FTSE in mundane form

Shares in three high-profile companies moved sharply today as investors reacted decisively to the publication of half-year results.

Can-maker Rexam jumped 5% but figures from Rentokil Initial and John Laing were less well received and resulted in stock falls of 5% or more.

The rest of the market was in mundane form with the FTSE 100 Index finishing the day 9.1 points stronger at 5869.1.

Investors may have taken a break ahead of a key speech by US Federal Reserve chairman Ben Bernanke tomorrow, which could offer clues on the direction of the American economy and interest rates.

Stronger-than-expected business confidence numbers in Germany – the world’s third largest economy – earlier managed to lift the mood of European markets.

The Footsie risers board was topped by Rexam – up 38.5p to 549.5p – after it delivered results in line with expectations and maintained hopes for further strong growth.

But fresh disappointment from services group Rentokil Initial sent its shares to the top of the fallers board.

The 5% drop – off 7.5p at 152.25p – came after Rentokil reduced full-year profits expectations for its textiles and washroom service business.

Mining stocks were in glum mood and packed the fallers board with Lonmin down 82p at 2740p, Vedanta Resources off 32p at 1330p and Rio Tinto off 89p to 2640p.

BHP Billiton also fell – 25p to 989p – as it continued to feel the effect of a strike at its Escondida copper mine.

Banking stocks were in focus after Credit Suisse reviewed target prices for a number of companies, including a downgrade for Alliance & Leicester.

A&L shares were off 1p at 1012p, but Halifax Bank of Scotland rose 8.5p to 999.5p following an increase in its target price to 1090p.

Insurers were on the front foot with Prudential up 16p at 580p, Legal & General ahead 2.5p at 128.25p and Norwich Union owner Aviva up 9.5p at 736.5p.

Outside the top flight, PFI specialist John Laing took a hit as it reported an 11% drop in pre-tax profits after revealing losses at its Chiltern Railways arm caused by a tunnel collapse in July last year. Shares weakened by 25.5p to 265p.

Ladbrokes fell 13.75p to 382p, reflecting moderate disappointment in the market at its 12.3% rise in half-year operating profits to £151.3 million.

Software firm iSoft traded lower for most of the day after confirming that the Financial Services Authority had launched an investigation into possible accounting irregularities. But the stock rallied 2% by the end of the day to finish up 0.75p at 42.5p.

On a brighter note in the FTSE 250 Index, property group Minerva rose 13.74p to 280p after an upgrade from investment bank Merrill Lynch.

The top gainers were Rexam up 38.5p to 549.5p, Prudential ahead 16p at 580p, Smith & Nephew up 12p to 445.25p and DSG International ahead 4.5p at 199.75p.

The biggest fallers were Rentokil Initial down 7.5p to 152.25p, Rio Tinto off 89p to 2640p, Lonmin down 82p to 2740p and BHP Billiton off 25p to 989p.