FTSE holds firm

EMI shares fell to their lowest level in a year today after the recorded music giant warned profits would be less than expected.

The stock was down 6%, even though EMI sought to offset some of today’s damage by promising to cut costs.

The bad news left the second-tier company 16p lower at 248.5p, although the FTSE 100 Index was untroubled by the update after holding firm with a fall of just 4.9 points to 6225.2 at mid-morning.

Falling metal prices meant miners were under pressure, while oil stocks continued to struggle after oil prices showed signs of remaining near 52 US dollars a barrel. Among the miners, Antofagasta dipped 9p to 465p and Xstrata eased 31p to 2368p.

Royal Dutch Shell was down 7p at 1707p, while BP was off 2.5p at 534.5p.

A shortage of major corporate news meant here was little direction to the market, with banks and retailers experiencing mixed fortunes after yesterday’s surprise hike in the cost of borrowing.

Alliance Boots was the heaviest retail faller, down 12.5p to 798.5p as it extended losses following disappointment at a trading update in the previous session.

Halifax Bank of Scotland was again lower after the rate rise, falling a penny to 1144p. Others in the sector under pressure included Royal Bank of Scotland, which eased 15p to 2053p.

The interest rate decision also had a bearing on housebuilding firms, with Persimmon off 27p to 1430.

In the FTSE 250 Index, Carphone Warehouse surged 3% after it reported a strong Christmas trading performance on the high street and said it was ready for another push to win more Talk Talk internet customers. Even though the number of new broadband customers appeared to have slowed, shares were up 8.25p at 331p.