FTSE down
News of a marginal improvement in Britain’s economic performance in the fourth quarter of 2010 failed to offer support to London stocks today in another lacklustre session.
The FTSE 100 Index dropped 18.7 points to 5885.8 as investors remained concerned over developments in Japan, where authorities raced to stop a radiation leak from a nuclear power plant damaged in this month’s earthquake.
Asian markets closed down earlier, with declines mirrored across Europe amid cautious sentiment.
Official figures confirming the UK economy contracted by 0.5% – better than the 0.6% decline previously estimated – gave little cheer to blue chips.
Sentiment in markets remained fragile as traders followed developments at Japan’s Fukushima Dai-ichi power plant, from which highly toxic plutonium has leaked.
But futures trading ahead of the opening bell on Wall Street suggested tentative gains for the Dow Jones Industrial Average in expectation of US economic data on house prices and consumer confidence.
Half-year figures from Plumb Center parent Wolseley saw the group rise to the top of the Footsie risers board.
Shares lifted 48.5p to 2137.5p – or 2% – after it swung to a first-half profit and said it will resume dividend payments due to improved demand in most of its markets.
However, heavyweight BP acted as a drag, down another 3% or 11.9p to 465.2p, as it continued to suffer after a Swedish tribunal put its £10bn (€11.3bn) deal with Russian government-owned Rosneft on hold because of a dispute with shareholders at Russian partner TNK-BP.
Its woes continued as major shareholder Standard Life reportedly told it to walk away from the troubled Rosneft deal.
Barclays led bank stocks down, off 4.4p to 288p, in a retreat after the sector made gains yesterday following upbeat broker comments.
Royal Bank of Scotland and Lloyds Banking Group declined 0.4p to 42p and 0.6p to 60p respectively.
Elsewhere, tour operator Thomas Cook fell 1.9p to 165.1p in the FTSE 250 following news of weaker demand in the UK from cautious holidaymakers.
Troubles continued for embattled outsourcer Mouchel after it revealed it had rejected a reduced proposed offer from Interserve – ending talks with the suitor and its other potential acquirer Costain.
Shares in Mouchel dropped 30% or 44.6p to 102.9p.
Identity theft protection business CPP was one of the day’s biggest casualties as it lost more than half its value after the firm said it was being investigated by the Financial Services Authority over “certain issues” surrounding the sale of its products.
Shares plummeted by 144.1p to 134p.
