London investors not in gambling mood

Gambling stocks pulled out of their nosedive today as investors came to terms with the dramatic charges laid against a sports betting company on Monday.

Party Poker owner PartyGaming fell 17% last night and was initially off another 4% before recovering to stand unchanged at mid-morning.

The wider market also showed a resilient streak as investors welcomed a slight easing in oil prices and a late rally for US stocks to leave the FTSE 100 Index up by 7.1 points at 5688.8.

The top flight had been up by 38 points in early trading but faded as a result of weaker energy stocks, with BP 8p lower at 626.5p and Royal Dutch Shell off 16p at 1874p.

Among the top-flight risers in London, sugar and starch group Tate & Lyle jumped by 2% – or 13.5p to 642.5p – after analysts warmed to a surprisingly positive trading statement.

Steel giant Corus was also ahead 6.25p to 409.25p while British Airways lifted 7p to 350p, amid hopes that the result of an inquiry into allegations of price fixing on long-haul fuel surcharges could be known soon.

As well as PartyGaming, which was flat at 85.25p, second-tier company 888 Holdings was up 2.25p at 170.75p. Sportingbet fell 7p to 175p – a drop of 4% after diving 35% yesterday.

One of the biggest falls of the session came from property website Rightmove, which fell 21% after admitting that revenues and earnings from work associated with new Home Information Packs would be significantly less than hoped for.

The warning came after the British government said the controversial survey part of HIPs would not be included in next year’s launch. Shares were below the company’s flotation price in March of 335p – 74p lower today at 278p.

Estate agency group Countrywide, which owns a stake in Rightmove and also has its own surveying division, fell 11%, or 48.25p to 377.5p.