FTSE in downbeat mood

The London market headed towards the Christmas break in lacklustre mood today following a downbeat finish on Wall Street and a spate of profit taking in Asia.

The FTSE 100 Index was up 1.3 points to 6185 by mid-morning with the exchange due to close at lunchtime.

Vodafone shares slipped more than 1% – or 2p – to 141.75p after it confirmed that it was considering an approach for the number four mobile phone operator in India.

Investors seemed concerned that Vodafone will be drawn into a bidding war for Hutchison Essar and could end up being forced to pay over the odds.

The market was also prevented from spreading its wings by a string of poor performing miners with Kazakhmys down 13p at 1076p and Vedanta weakening by 15p to 1162p, while Rio Tinto was off 31p at 2634p.

Drug maker Shire was also on the back foot following news of a delay in the approval of a hyperactivitytreatment. It shares topped the fallers’ board – down 27p, almost 3%, at 1035p.

In the second tier, Premier Foods worried the market and dropped more than 6% or 19.75p to 297p, after it said profits will be at the lower end of expectations as a result of the warm weather damaging sales and rising costs eating into margins.

Premier, which owns brands such as Branston and Loyd Grossman, agreed to a £1.2 billion takeover of rival RHM earlier this month and shares in RHM were also on the slide today – down nearly 5% or 18.75p to 376.75p.

Back in the top flight, cruise company Carnival continued to steam ahead after yesterday’s solid results. The stock has endured a poor year in the Footsie, but shares were up 59p to 2595p today.