Footsie down in early trading

Online gaming companies were on the front foot today amid hopes of consolidation in the battered sector.

Party Poker owner PartyGaming and 888 Holdings were both on the up following reports the pair planned to combine pools of internet gamblers, which had been reduced by the removal of the American market.

It was one of the few bright spots in an otherwise struggling stock market as disappointing GDP figures from the US prompted the FTSE 100 Index to slip 41.2 points to 6119.7 by mid-morning.

PartyGaming was among the top risers in the FTSE 250 Index – ahead half a penny at 30.5p – after the speculation. Rival 888, which confirmed it had been talking to third parties following the US ban, was up 2p to 110p.

A number of heavyweight stocks were pulling the top flight lower, including BP after a drop of 7.5p to 594.5p, while mining stocks also caused a drag with Rio Tinto down 47p at 2850p and Xstrata weakening 35p to 2230p.

ITV shareholders also gave a cool reception to reports that the broadcaster could be interested in buying Virgin Radio and STV owner SMG. The stock was among the top flight’s biggest fallers, off 2.25p at 104.5p.

Meanwhile, Cadbury Schweppes announced it is set to enter the UK chewing gum market with the launch of Trident next year. It is the world’s second largest chewing gum brand after US firm Wrigley, which has 95% of market share in the UK. But investors appeared more concerned about the lowering of its operating margins target, causing shares to slip 11.5p to 525.5p.

However, Standard Life streaked ahead at the top of the leaderboard, up 6p at 289p, after a report in the Sunday Express said it could be in the sights of French insurer Axa.