Footsie in positive territory

London’s leading shares ended the day in positive territory today despite a fall for British Airways after news of a competition blow.

Having gained as much as 71 points in early trading the FTSE 100 Index lost some of its shine after a negative start on Wall Street, leaving London investors with less dramatic gains than looked likely earlier.

Shares were initially buoyed by rising commodity prices which sent mining stocks higher as well as strong performances by equities in the US and across Asia overnight, taking the footsie clear of the 5700 mark.

But the miner’s gains were later reversed with the change in sentiment as traders realised that the earlier rally on Wall Street was not sustainable.

With the Dow Jones Industrial Average drifting into the red, London’s top flight index ended the session 19.1 points higher at 5684.1.

BA caused the biggest stir in the Square Mile after it emerged it and other airlines were under investigation by the Office of Fair Trading and US Department of Justice over the cost of air travel.

The company said commercial director Martin George and communications chief Iain Burns had been given leave of absence during the investigation and shares in BA slumped 6% or 21.75p to 346p.

With the probe stretching to both sides of the Atlantic, traders said it was also weighing on Wall Street sentiment.

In London, Icelandic raider Baugur was also the centre of speculation in the City as rumours circulated that it has pulled out of its bid for department store chain House of Fraser.

Fraser confirmed earlier this month that the investment firm had made a 148p a share offer. Shares were down 4.5p to 128p today but talk that Baugur had its eyes on supermarket chain Morrison instead sent its shares 3p higher to 197.75p.

After a mixed session, miners ended the day in negative territory with Xstrata losing 33p to close at 1952p, while Kazakhmys fell 18p to 1077, Anglo American eased 2p to 2104p and BHP Billiton also slipped tuppence to close at exactly 1000p.

Outside the top flight, mortgage bank Bradford & Bingley lost 12.5p to 446.5p after it said it may take another charge to cover liabilities related to the mis-selling of endowment policies.

Going the other way, stock in capital works consultancy WS Atkins rose 7% or 67p to 840p after it posted a rise in annual profits and said its outlook remained positive as demand was strong in all of its markets.

Fashion house Mulberry gained 7.5p to 192.5p after reporting profits had trebled to £6.2 million due to huge demand for its designer handbags sported by stars such as Kate Moss.

The top FTSE 100 risers were Rentokil Initial 6.5p higher at 149.75p, Persimmon up 47p at 1193p, Compass gaining 9p at 259p and Partygaming rising 3.75p to 123p.

The biggest fallers were British Airways down 21.75p at 346p, British Energy off 15.5p at 674.5p, Drax 18p lower at 826.5p and Xstrata 33p down at 1952p.