British Gas owner Centrica continues slide on FTSE
Bid speculation surrounding British Gas owner Centrica failed to prevent the London market from continuing on its downward path today.
The blue-chip stock shot up by more than 7%, or 18p to 261.5p, as rumours returned of potential bid interest in the company.
The rest of the market was in more subdued mood with the FTSE 100 Index down by 21 points at 5279.2 by mid-morning.
A fall of 50 points by New York’s Dow Jones Industrial Average, prompted by factors such as concerns over consumer confidence, contributed to the decline, which extended losses seen over the past week.
Miner BHP Billiton was one of the heaviest fallers as traders digested its full-year results announcement.
Analysts said the rise in pre-tax profits to 8.7 billion US dollars (€7.1bn), from 4.5 billion US dollars (€3.7bn), was in line with expectations and that the stock was victim to profit-taking.
BHP’s 24p fall to 811p had a knock-on effect with Rio Tinto off 49p at 1987p, Anglo American weakening 27p to 1385p and Antofagasta losing 19p to 1472p.
But they were beaten to the top of the Footsie fallers board by retailer Dixons after investors lost the right to dividend payouts. Dixons was 6.5p lower at 152.5p.
It was followed on the way down by Scottish & Southern Energy, which retreated more than 3% or 35p to 967.5p after it also went ex-dividend.
The rest of the energy sector was buoyed by the Centrica news, which saw traders speculate on possible interest from Norsk Hydro.
National Grid lifted 5p to 519.5p while Scottish Power added 4p to 492.25p and Severn Trent rose 5p to 963p.
Outside the top flight, logistics group Brambles cheered 3p to 331.75p after posting a 23% rise in underlying profits despite a weaker performance from its waste business Cleanaway.
Elsewhere, retailer Peacock rose 29p to 313p after it said it had received a takeover approach.
