FTSE in red as financials stumble
A lacklustre performance by financial stocks dragged the London market into the red today.
Disappointing figures from Lloyds TSB had an impact on most of the rest of the sector, with only HBOS improving.
The FTSE 100 Index declined from its positive mid-morning position to stand seven points down at 4411.7 by lunchtime.
Oil prices reached a new high of $43.17 in New York, putting pressure on a host of companies including chemicals-to-paints group ICI.
Analysts said gross domestic product and consumer sentiment data out this afternoon on Wall Street could drag the Footsie lower by the close of trading in London.
Corporate news was led by Lloyds TSB, which blamed the sale of overseas businesses for a 7% fall in half-year profits to £1.56bn (€2.4bn).
Shares in Lloyds were 3.5p lower at 410.25p, while a number of rivals were also on the back foot with Barclays down 7.5p at 459.5p and Abbey National retreating 6.25p to 565.75p.
Insurer Royal & Sun Alliance was 0.5p adrift at 77.25p after saying it planned to raise £850m (€1.3bn) from the sale of the UK life insurance operation it closed to new business two years ago. Other insurers followed it down, with Friends Provident losing a penny to 132p and Legal & General also weakening 1p to 97.25p.
Record oil prices left ICI under pressure, off 2.5p at 227p, but profit takers were also targeting the stock after it made strong gains yesterday on the back of a 23% rise in half-year profits.
But positive momentum was offered by mining group Anglo American, which topped the risers board with a 28p gain to 1173p. Rio Tinto was ahead by 26p at 1437p and BHP Billiton was also up 6p at 507p.
Outside the top flight, shares in energy group International Power improved nearly 5% or 7p to 150p after acquiring power plant assets worth $2.3bn (€1.9bn).
The deal, which will be funded by a rights issue, is expected to enhance earnings in its first full year of ownership.
But investors reacted negatively to survival plans unveiled by engineering firm Jarvis. Shares in the group, which slipped £246.7 million into the red over the past year, fell 12% or 6.25p to 45.5p.
Shares in logistics group Exel fell 3.5p to 732.5p despite it hailing the success of its strategy on acquisitions today as it reported a 15% hike in half-year profits.
Meanwhile, retail radio supplier Immedia Broadcasting saw its stock remain unchanged at 84p as it unveiled a 6% widening in first half losses.
