FTSE staggers to lacklustre close

The FTSE 100 Index lost ground today in a lacklustre end to the trading week but held firm above the 5700 mark breached in the previous session.

The top flight finished 24.6 points lower at 5703 despite European leaders agreeing an aid package for Greece and US markets opening on the front foot.

Wall Street made early progress after an overnight sell-off, with stocks helped by consumer confidence figures although the latest revision to US output in the final three months of 2009 fell short of hopes.

With corporate news thin on the ground in London, it was a largely quiet day for the blue-chip index, which is temporarily expanded to 101 firms in the wake of the Cable & Wireless demerger.

The pound was down to 1.11 against the euro as the single currency strengthened on news of the summit deal, and languished below 1.49 against the dollar.

In corporate news, Cable & Wireless completed its long-awaited demerger, with two separate companies now listed in the top flight – meaning the FTSE 100 contains an extra company until Tuesday.

C&W Worldwide (CWW), which provides services to the world’s largest users of telecoms, gained 3% or 3p to 92.25p. But C&W Communications (CWC), the operator of services in 38 local markets, instead fell 61% or 91.25p to 56.75p.

Oil and gas firm Cairn Energy was a strong performer as the stock continued to gain from its announcement of much higher output from its Indian assets earlier in the week. The shares rose 7.2p to 433.9p today as Citigroup lifted its target price.

International Power was on the wrong end of broker comments, however, as JP Morgan cut its rating on the stock and sent shares down 12.8p to 316.9p. Scottish & Southern Energy – also out of favour with JP Morgan – lost 24p to 1102p.

Hedge fund giant Man Group was one of the biggest fallers as investors gave the thumbs-down to reports that the company is eyeing expansion in the US. Shares fell 9p to 242.4p.

HMV was the star performer in the FTSE 250 after it released further news on its strategy update for the next three years.

The Waterstone’s owner soared 10% – 8.2p to 87p – after it revealed plans to boost its live music and festival division, while implementing a turnaround plan at its under-pressure book chain.

Meanwhile, Durex-to-Scholl footcare consumer goods firm SSL International rose 9.5p to 808p after it said strong sales of its key brands and acquisitions had underpinned growth this year.

Elsewhere, collectables firm Stanley Gibbons rose 7%, up 9p to 130.5p, after it posted an 11% rise in annual profits.

The biggest Footsie risers were CWW ahead 3p at 92.25p, WPP up 18.5p at 665.5p, Marks & Spencer up 8p at 371.1p and Cairn Energy up 7.2p at 433.9p.

The biggest Footsie fallers were CWC down 91.25p at 56.75p, International Power off 12.8p at 316.9p, Man Group down 9p at 242.4p and Scottish & Southern down 24p at 1102p.