Press Association
Monday 15th March 2010
The FTSE 100 Index clung to its opening mark as progress was held back by poor corporate news flow and disappointing figures from the key services sector.
Low volumes also added to lacklustre trading on the Footsie, while there was was no guidance from Wall Street as US markets are closed for the Independence Day holiday. The FTSE 100 closed up two points at 4236.3 after more economic gloom in the UK.
The Chartered Institute of Purchasing and Supply posted an activity index of 51.6 from the services sector - down from the previous month's 51.7 when the sector notched its first month of growth since April last year.
But London's blue-chip index at least stemmed the losses seen in the previous session after grim US unemployment data caused shares worldwide to slide on Thursday afternoon, with the FTSE 100 down more than 2%.
The worries over global economic growth were again reflected in trading for mining shares, with Kazakhmys down 16p at 630p, Xstrata falling 9.6p at 654.8p and Vedanta Resources off 19p at 1369p.
Insurer Friends Provident led the fallers board, down 7% or 4.58p to 63.51p, as shares adjusted for the disposal of its majority stake in F&C Asset Management to its shareholders. The move will allow Friends to focus on the task of reviving its core business.
British Airways attracted interest late in the session as the company posted traffic figures for June and announced cost cutting and plans to shed around 3,700 jobs this financial year. Despite revealing it carried 2.93 million passengers last month - 4.9% fewer than in June 2008 - shares held on to gains after Nomura started coverage of the carrier at neutral. The stock closed up 6.5p to 125.5p.
Another leading Footsie riser was publishing and media group Reed Elsevier, which gained 17.25p or 457.25p or 4% after Credit Suisse brokers upped the European media sector to overweight.
Banks also featured on the risers board in a decent finish to the week, with Barclays ahead 8p to 297p, HSBC 8.7p stronger at 509p and Lloyds Banking Group up 1.6p at 67.5p. Royal Bank of Scotland joined the hunt with shares up 0.89p to 38.79p. But Balfour Beatty shares were 7.75p lower at 300.5p, even though the construction firm said it had been trading in line with expectations.
The biggest Footsie risers were British Airways up 6.5p at 125.5p, Reed Elsevier ahead 17.25p at 457.25p, Barclays up 8p at 297p and Lloyds Banking Group up 1.6p at 67.5p. The biggest Footsie fallers were Friends Provident down 4.58p at 63.51p, Land Securities off 18p at 443.5p, Old Mutual down 2.9p at 82.62p and Fresnillo down 13.5p at 500.5p.
