FTSE struggling

The London market struggled to make further progress today, despite strong gains for Prudential and a number of retail stocks.

The first trading day of the year resulted in a gain of 90 points, but the FTSE 100 Index was down 3.4 points at 6307.5 by mid-morning after a recent drop in copper prices caused profit-taking in the mining sector.

Among the fallers, Antofagasta dipped 19p to 497p, Xstrata fell 96p to 2473p and Vedanta Resources eased 35p to 1195p. Eight of the top ten fallers in the FTSE 100 Index all came from the sector, with declines of 1% or more.

Banking stocks helped offset the losses as the sector maintained the progress that helped the Footsie make a flying start to the year.

Barclays rose another 6p to 752p as investors continued to take a punt on the possibility of a bid for the group. HSBC lifted 7.5p to 946.5p, while Royal Bank of Scotland cheered 29p to 2065p after UBS named it as one of three banks to watch in 2007.

Prudential set the pace at the top of the risers board after the insurer - seen by some as a possible bid target – gained 15p to 726p.

A number of retailers were close behind as investors prepared for a series of trading updates in the coming days.

Fashion chain Next, which is due to post a trading statement tomorrow, showed a rise of 12p to 1854p, while Currys owner DSG International lifted 2.75p to 198.25p. Morrisons was ahead 2.5p at 262.5p.

Confidence was helped by a positive update from warehouse chain Majestic Wine, which kicked off the retail reporting season with a healthy return from the Christmas period. Like-for-like sales improved 4.4% on a year earlier, ensuring Majestic shares rose 1.5p to 360p.