Trading slumps on FTSE

The London market gave up its early gains today as a busy corporate calendar failed to excite traders.

The FTSE 100 Index advanced by more than 20 points in early trading, but slipped back by mid-morning to stand 1.9 points lower at 6192.3.

Vodafone shares were one bright spot, cheering 2.5p to 138.5p, as the firm reported growth in underlying profits, despite admitting it was still feeling the pinch in a tight European market.

Investors seemed content with the Newbury-based company’s outlook as it posted adjusted operating profits of £5.1bn (€7.54bn) during the first six months to September 30 – up 7.5% on last year.

Alliance Boots was also on the front foot as it made encouraging sounds over July’s tie-up between Boots the Chemist and Alliance UniChem. Shares were 7p higher at 826p as the company’s UK retail arm reported a 3.8% growth in half-year trading profits to £192m (€284m).

However, the picture was not so rosy for takeover target Scottish Power. The stock slipped 4.5p to 739p as it reported stellar first half pre-tax profits up 77% to £483m (€714.5m).

But it remained quiet on takeover developments following last week’s revelation that it was in talks with Spanish energy group Iberdrola.

Outside the top flight, magazine publisher EMAP was on the rise after revealing record £25m (€37m) investment into new product development, particularly digital projects. Shares were up 8p to 804p.

And Goodfella’s Pizzas and Fox’s Biscuits maker Northern Foods marched ahead despite falling profits as it confirmed a cost reduction programme was on track. The stock lifted 5.25p to 92.25p.

Meanwhile, fashion label Burberry attracted interest after revealing a helping hand from the popularity of its luxury handbag range. The stock was 1.75p stronger at 558p after news of a 7% hike in half-year like-for-like operating profits.