Glaxo gloom dampens FTSE hopes

GlaxoSmithKline shares were back under pressure today after analysts downgraded their ratings in the wake of third quarter results.

While the figures were in line with expectations, City firms including WestLB expressed disappointment at growth for some of the company’s key products.

Glaxo shares followed yesterday’s 1% drop with a similar decline of 17p to 1232p, although the wider London market fared better with a gain of 1% for the FTSE 100 Index – up 65.7 points at 6547.7 in the first hour of trading.

The mood was helped by a strong finish on Wall Street, as traders speculated over the possibility of another cut in US interest rates.

Argos owner Home Retail Group featured among the risers as analysts continued to warm to results from the retailer yesterday. Shares were ahead 11.25p at 404.25p. B&Q owner Kingfisher followed suit with a rise of 3.6p to 170.3p.

Norwich Union business Aviva gained 3% after it published a third quarter trading update at the top end of market expectations. Shares lifted 19p to 723p, while sector rivals Prudential and Legal & General also benefited with gains of 10.5p and 1.4p to 755.5p and 131.9p respectively.