FTSE avoids big loss on volatile day

The London market took a roller-coaster ride today as caution on Wall Street muted early confidence over blue-chip stocks.

An opening flurry among leading stocks including Vodafone and GlaxoSmithKline was offset by a downbeat opening on Wall Street amid uncertainty over interest rates.

The FTSE 100 Index - more than 52 points higher at one stage - eventually closed 17.6 points down at 6505.1, its lowest close for a month following the near 2% fall seen in the previous session.

On a volatile day, Vodafone topped the risers' board climbing more than 2%, or 3.3p to 158.4p, after the firm received calls from investors over a potential restructuring of the company which would release more cash to shareholders.

GlaxoSmithKline also gained a 2% boost, up 27p to 1299p, as the market took heed of the firm's strong product pipeline over the recent heart risk concerns surrounding its diabetes medicine Avandia.

Late concerns over petrol supplies in the US also pushed oil prices above 67 US dollars a barrel and left the oil majors higher. Royal Dutch Shell cheered 21p to 1972p, while BP was up 3p at 562p.

Among the fallers, property firms were on the back foot after hotel chain Vector Hospital delayed a float due to "market conditions".

With further interest rates rises in prospect, Persimmon was the leading faller - down 47p at 1240p. Land Securities was off 65p at 1757p and Segro down 20.5p at 657p.

Intercontinental Hotels also suffered despite news that the acquisitive Barclay brothers had upped their stake in the group to 10%.

Shares in the world's biggest hotelier were up 8p earlier in the day but closed down 13p at 1305p.

Yorkshire Water parent Kelda headed down as bid rumours for the firm subsided, and reports said the company had emerged as one of the most likely candidates to buy Thames Water Services for up to £100 million.

The stock was down 1% or 8p at 969.5p, despite results showing a 7.5% increase in pre-tax profits.

Catalysts-to-chemicals group Johnson Matthey was also off, down 31p at 1597p, with its higher-than-expected 18% rise in underlying annual pre-tax profits failing to give the stock a boost.

Elsewhere, car parts and cycles retailer Halfords jumped almost 6% after it reported a 9% rise in like-for-like sales and announced a partnership with Olympic champion Chris Boardman for a new range of cycles. Shares rose 22p to 391p.

But low-cost airline easyJet gave back gains seen in early trading after delivering solid growth in passenger numbers during May and its highest load factor since January following a raft of fare cuts. Shares were down 10.5p at 511p.

Meanwhile, fellow FTSE 250 Index firm FKI, an engineering group, struggled amid disappointment at the outcome of a strategic review. Shares were off 12%, or 17.25p, at 119.5p.

The leading Footsie risers were Vodafone, up 3.3p at 158.4p, GlaxoSmithKline up 27p at 1299p, BHP Billiton up 23p at 1286p and Cable & Wireless ahead 2.2p at 197p.

The leading Footsie fallers were Persimmon down 47p at 1240p, Land Securities off 65p at 1757p, Segro down 20.5p at 657p and Drax off 22p at 747.5p.