Compass keeps FTSE on track

Catering giant Compass led the FTSE 100 Index tentatively forward today after the London market shrugged off early losses by banking and oil stocks.

Compass shares rose 8% as investors expressed relief at the absence of bad news in its results and some signs that the company was getting back on track.

Shares in the wider market were also buoyed by gains on Wall Street as the Footsie reversed early losses of 26.1 points to close the day up 13.6 points at 5491.

Banking and oil stocks prevented serious progress in the top flight, with Cairn Energy and Barclays both shedding 1% of their share price.

Compass headed the risers’ board as shares rose 16.25p to 216.75p after it reported full-year profits in line with expectations and said the sale of its travel concessions business and search for a new chief executive were progressing.

It was followed by online poker giant PartyGaming, which closed the day up 8% or 8.5p at 118p – higher than its 116p flotation price in June.

It marked a significant moment for the company as it suggested it was on the way to recovery after a warning on poker growth 13 weeks ago wiped £3bn (€4.4bn) from its market value.

But the main talking point of the session was the acquisition of ports and ferries firm P&O by Dubai-based DP World for £3.3bn (€4.8bn). Shares in P&O closed up 4.5p at 439.5p.

There was less good news for the banking sector, where Barclays led rivals into the red as investors took comments that it was “broadly” in line with consensus as an indication that its full-year results may turn out to be towards the lower end of hopes.

With the UK’s third largest bank also failing to improve the outlook for its Barclaycard division, shares slipped 6.5p to 595.5p.

The update unsettled other stocks in the sector with HSBC down 4.5p at 935.5p and Halifax Bank of Scotland 0.5p lower at 881p.

Among energy stocks Cairn Energy lost 20p to stand at 1835p, while BG Group was off 3.5p at 545p and BP was down 3p at 641.5p after the cost of crude eased below $57 a barrel on the back of warm US weather. Royal Dutch Shell offered some relief, up 6p at 1909p.

In the second-tier, logistics group Brambles rose 10% or 37.25p to 401p after announcing plans to return cash to shareholders and sell its Cleanaway waste management arm to focus on its more profitable businesses.

But there were two profits warnings from the UK high street where computer games retailer Game fell 4% or 3.25p to 74.5p after being hit by supply shortages and weak demand for older consoles and software.

Home Entertainment dropped 16% or 14.5p to 73.5p as sales at its ChoicesUK video rental chain continued to fall because of factors including piracy and lower prices of DVDs.

Elsewhere, cash machine operator Cardpoint slumped 43%, down 54.5p to 72p, after it scaled back profits forecasts in the wake of its Moneybox acquisition.

The day’s biggest blue chip risers were Compass up 16.25p to 216.75p, PartyGaming up 8.5p to 118p, Morrisons up 5.75p at 180.5p and Daily Mail and General Trust ahead 17p at 676p.

The heaviest fallers were Cairn Energy off 20p at 1835p, Barclays down 6.5p at 595.5p, Alliance UniChem down 7.5p at 753p and Severn Trent 9p lower at 1011p.