Footsie makes uncertain start

The London market went into reverse despite a positive contribution from top flight property companies today.

Upbeat figures from developer British Land lifted the real estate sector, but the overall mood was more uncertain as investors struggled to find sufficient news to keep the market in positive territory.

By mid-morning, the FTSE 100 Index had lost an initial gain of 35 points to stand 3.1 points lower at 5790.4.

British Land impressed analysts with a 4.6% increase in the value of its property portfolio in the final three months of the year, causing shares to rise 5.5p to 1191.5p. Land Securities cheered 33p to 101p while Hammerson cheered 2p to 1090.5p.

The improvement was offset by PartyGaming as investors deserted the gaming sector following a strong run. The PartyPoker owner fell 6p to 122.5p while second-tier rival 888 Holdings eased 8p to 189.5p.

Furniture retailer MFI took centre stage in the FTSE 250 Index as shares surged by almost 13% in the wake of a significant landmark in its overhaul.

Analysts said the sale of Hygena Cuisines netted much more than expected, raising hopes that the ailing company had sufficient resources to carry out its revival plan without the need for a rights issue.

Shares in the FTSE 250 Index company were up 9.25p to 82.75p as all eyes turned to the company’s trading and restructuring update due later this month.

MFI’s improvement was matched by other stocks in the retail sector, with B&Q firm Kingfisher up 1.25p to 227.75p ahead of a trading update on Thursday.

Argos owner GUS also cheered 6.5p to 1079.5p while Tesco cheered 2.75p to 324p.

Elsewhere, miners were showing signs of stabilising after a rocky patch in recent sessions. Rio Tinto gained 30p to 2764p while Xstrata was ahead 13p at 1621p.