Slight dip for FTSE

Disappointment over annual results from a number of blue-chip firms held the London market close to its opening mark today.

The FTSE 100 Index was 7.8 points lower at 6436.6, reflecting the closure of US markets yesterday and losses in European and Japanese markets.

Brewer Scottish & Newcastle led the Footsie fallers after the brewing giant said it would offset the impact of the UK smoking ban and rising costs with around £50m (€74.2m) of cost savings over the next three years.

Its annual results also failed to impress investors as both its UK and international divisions were below market expectations. The stock was 20p lower at 555p.

It was followed down by drinks can maker Rexam, off 16.5p to 527.5p, as its annual underlying profits dipped amid a large increase in aluminium and energy costs.

Barclays beat expectations with its profits result, but still saw shares fall 6.5p to 775p.

Cadbury Schweppes slipped 6.5p to 570p as it reported disappointing margins and a £30m (€44.5m) cost-hit from last year’s salmonella scare.

Building materials group Hanson topped the FTSE 100 risers’ board, jumping 4% on news of consolidation in the sector. Shares were up 32p to 843.5p.

Elsewhere music group EMI soared 6%, or 12.75p, to 234.25p after it received a fresh takeover approach from its US-based rival Warner Music. The interest emerged just days after EMI shares slumped in the wake of its second profits warning this year.

Both companies made two approaches to buy the other during 2006, but were thwarted when a European court judgment cast doubt on whether regulators would allow further consolidation in the music industry.

Construction group Carillion rose 2.25p to 393.75p after it secured a signalling contract worth £60m (€89m) over five years. The news impressed investors as the firm had previously been banned by Network Rail for health and safety reasons.