BT and Diageo biggest FTSE fallers

Telecoms giant BT and Guinness group Diageo led falls on the London market today after disappointing updates from the firms.

The wider FTSE fell 56.1 points to 4178.1 in mid-session trading, with stocks having started on the back foot after the Dow Jones Industrial Average failed to punch back above the 8,000 mark overnight on Wall Street.

Medical equipment maker Smith & Nephew, tour operator Thomas Cook and Rolls -Royce were also in focus on London’s FTSE 100 in a busy session for corporate updates.

Guinness to Smirnoff drinks giant Diageo was a big faller, down 55.5p to 852p after a sharp decline in first-half sales growth and revising forecasts for profits growth lower.

But BT was the worst hit, down 8%, or 8.5p and 96.7p after reporting that third-quarter pre-tax profits tumbled 81% after operating losses of more than £500m (€553m) at its troubled global services division.

British Land meanwhile shed 16.25p to 467p as it launched plans for a £740m (€819m) rights issue.

It was joined on the fallers board by a number of insurers, with Prudential among those suffering declines, off 11p at 337.5p ahead of its new full year business figures next week.

Rolls-Royce was up 2p at 317.5p after a shaky start as it said it did not expect to grow profits this year despite record orders.

Medical instruments firm Smith & Nephew however was the top FTSE riser after results met forecasts and it said it expected “resilient” markets in 2009. Shares rose 28.5p to 541.5p.

Building materials group Wolseley was also higher – ahead 9.5p at 216.5p - thanks to an upgrade from brokers at Citi.