Footsie remains in the red
The benchmark FTSE 100 Index remained in the red today, despite clawing its way back from earlier lows after US economic data came in better than expected.
London’s leading shares shed 20.5 points to close the session at 4056.6, with investors also reacting to a gloomy assessment of the mobile phone market from Nokia.
The market has failed to push ahead in recent weeks as concerns about corporate and economic prospects on both sides of the Atlantic keep investors on the sidelines.
Among blue-chip stocks making headway, Shire Pharmaceuticals topped the Footsie risers with a 16p rise to 440.25p, as takeover speculation resurfaced after rival Galen announced it had received a bid.
Elsewhere, the drinks industry made modest gains, with Guinness owner Diageo putting on 8p at 633p and Scottish & Newcastle inching up 1p to 353.5p.
But pubs operator Mitchells & Butlers let go of earlier gains to finish the day a penny down at 220p.
Banks and insurers were also feeling the pressure. Former building society Northern Rock dropped earlier gains as it reported a 22% rise in profits and record lending figures in its half-year results.
Northern Rock added that demand for remortgaging would more than offset any pressure caused by slowing house prices. After gaining ground in early trading, shares closed down 16.5p at 680.5p.
Oil giant Shell rose 7p to 399p after announcing a natural gas exploration deal with French rival Total in Saudi Arabia worth an estimated two billion US dollars (£1.25bn).
Rival BP was also ahead, rising 6p to 411.25p by the close.
Elsewhere, tobacco giant BAT lost ground after announcing yesterday that it had bought Italian state-run operator ETI.
BAT conceded last night that the price-tag was higher than the City expected and shares eased 0.5p to 641p.
However, rival Gallaher rose 6.5p to 560p and Imperial Tobacco remained at 990p.
Software group Sage led the FTSE 100 fallers after unveiling an acquisition of its own today.
It lost 5%, or 10p to 177p, after announcing the acquisition of Oregon-based Timberline.
Outside the top flight, Galen leapt 17% or 104p to 737.5p after revealing it was in takeover talks.
Bank note printer De La Rue also rose, gaining 16p to 261p, after announcing better-than-expected first quarter results.
Former blue-chip Marconi Corporation reported a sharp fall in first quarter sales and offered little sign of an upturn in the current three month period.
The stock, which was created following Marconi's debt-for-equity restructuring, regained earlier falls to finish up 1.25p at 69p.
Retailer New Look ended the day unchanged at 285.5p after reporting improving sales after a tough spring season.
Topping the Footsie risers board were Shire Pharmaceuticals up 16p at 440.25p, Tomkins up 4.5p at 246.5p, Shell up 7p at 399p and BP up 6p at 411.25p.
The biggest fallers were Sage down 10p at 177p, AMVESCAP down 19p to 441p, Reuters down 9p to 215p and ICI down 4.25p at 130.5p.
