FTSE ends bad week in the red

The FTSE 100 Index ended a torrid week in negative territory today as continued uncertainty swept through the Square Mile.

The Footsie made a surprise gain of more than 40 points in the first hour but then went sharply into reverse as investors struggled to come to terms with one of the most turbulent weeks in recent market history.

Amid the confusion there were contrasting fortunes for British Airways and British Gas owner Centrica as the Footsie closed 14.2 points lower at 5657.4.

The biggest rise came from BA as investors celebrated better-than-expected full-year profits of £620 million and an increased revenues forecast.

A day after another former state-owned company, BT, posted gains of more than 8%, BA shares soared more than 9% higher – up 29.25p to 349.25p.

It was followed on the risers board by steel giant Corus as its shares reflected an increase in the takeover price offered by industry leader Mittal for European heavyweight Arcelor. Shares were up 6.25p at 379.75p.

Oil stocks spent much of the day on the front foot as the price of crude went back above 70 US dollars a barrel.

There was also optimism that Royal Dutch Shell may be able to return to Nigeria after it was forced to abandon operations in the African country following violent militant raid earlier this year.

It helped BP lift 5p to 623p and Cairn Energy gain 48p to 2117p, but Shell fell 3p to 1795p.

British Gas owner Centrica was also on the slide, down by nearly 2% or 4.75p at 264.75p after it warned full-year earnings would be at the lower end of expectations and that it would continue to make a loss in its residential arm if wholesale energy prices failed to drop.

And SABMiller fell 34p to 1027p as investors continued to focus on soaring costs rather than the 18% rise in pre-tax profits it reported yesterday, when it dipped 33p to 1061p.

Outside the top flight, MFI Furniture jumped 8%, or 8.75p to 119p, as it said it was mulling approaches from a number of parties interested in buying all or part of its ailing retail arm. That offset news of continued poor trading.

Computer games firm SCi Entertainment also made strong gains after it revealed better-than-expected sales of the latest instalment of the Tomb Raider series.

With SCi on course to return to profit, the Eidos owner saw its share price improve 30p to 510p, a gain of more than 6%.

Paul Webb, trader at CMC Markets, said: “Equities have made a determined effort to rally ahead of the weekend break but there’s been an overall lack of conviction despite some solid corporate earnings from British Airways.”

The biggest blue chip risers were British Airways up 29.25p to 349.25p, Persimmon 52p stronger at 1200p, PartyGaming up 5p to 141.25p and Cairn Energy up 48p to 2117p.

The heaviest fallers were Kazakhmys down 48p to 1046.5p, Xstrata off 74p to 1932p, SABMiller down 34p to 1027p and Antofagasta 53p lower at 2039p.