London close: Miners trap Footsie in red
London's leading index failed to hold on to brief US-inspired gains as falling metal prices, Middle East concerns and a dismal day for online gambling stocks had blue chips back in negative territory.
Internet casino group PartyGaming took a hit as news emerged that BETonSPORTS' chief executive David Carruthers has been detained by the US federal authorities.
Other gambling firms such as Sportingbet and 888 Holdings also beat a retreat, while Vedanta Resources, Xstrata, Kazakhmys and Antofagasta led miners south as sellers clobbered metal prices.
Building supplies giant Wolseley also slipped after its trading statement. Revenue for the 11 months to 30 June is up by around 25% on the same period in 2005, including double digit organic growth.
Trading profit was up by around 20%, although, as expected, the rate of growth has slowed over the second half of the financial year due to the stronger comparators.
GUS closed better though on the back of reports over the weekend that there could be a private equity move for its retail side.
Meanwhile, weapons and aerospace group BAE Systems expects to report good progress in the first half of its financial year, underpinning its full-year outlook.
Tesco has acquired Leader Price in Poland. Leader Price is a convenience retailer with sales of £167m. The deal, subject to the usual regulatory approvals, is worth £72m and will help Tesco to grow its business in the highly fragmented and competitive Polish market, it said.
Wm Morrison has exchanged contracts with Waitrose for the sale of six stores and a non-operational distribution site at Aylesford in Kent.
Utilities were in demand as investors moved into defensive stocks in light of the global equity sell off. Kelda led the gains, while Centrica and Drax were also on the move.
McCarthy & Stone has recommended a takeover offer worth nearly £1bn, about 1,000p per share, from Barclays Capital and Permira, the private equity groups, but a consortium of Simon and David Reuben, HBOS and Tom Hunter have indicated they will make a higher offer of 1,030p per share albeit with conditions.
The news led the rest of the homebuilders higher, with Persimmon, Wilson Bowden and Redrow all in the blue.
Following today's share price slide, equipment hire firm Ashtead Group confirmed it is in "advanced, exclusive discussions" regarding a possible $1bn acquisition in the US to be part funded by a £150m rights issue.
Israeli TV producer Dori Media also issued a statement saying it knows of no reason for today's share price plunge.
It said, "In view of the recent heightened political tension in the Middle East, DMG would like to inform its shareholders that the majority of its business revenues come from outside the region and that the company's business operations in Israel continue as usual."
Aerospace contractor Ultra Electronics said its Sonar & Communication Systems business has won a £56m Ministry of Defence contract to supply and support airborne laser targeting pods for the UK Eurofighter Typhoon aircraft.
Global information management solutions group SDL posted gains after it said it expects to produce half-year profits well ahead of expectations.
Futura Medical announced pilot scale-up trials for its FLD500 product, a female lubrication device.
Shares in Cleardebt were in demand after the provider of financial advice to individuals experiencing personal debt problems posted an upbeat trading update.
FTSE 100 - Risers
Kelda (KEL) 810.00p +2.40%
Persimmon (PSN) 1,213.00p +2.10%
GUS (GUS) 982.50p +1.92%
Centrica (CNA) 275.25p +1.85%
Standard Chartered (STAN) 1,250.00p +1.79%
BSkyB (BSY) 541.00p +1.50%
Shire (SHP) 784.50p +1.23%
Scottish Power (SPW) 578.00p +0.96%
Gallaher (GLH) 849.00p +0.83%
Severn Trent (SVT) 1,194.00p +0.76%
FTSE 100 - Fallers
PartyGaming (PRTY) 103.00p -5.50%
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Vedanta Resources (VED) 1,278.00p -4.13%
Xstrata (XTA) 1,986.00p -3.69%
Antofagasta (ANTO) 405.00p -3.28%
Yell Group (YELL) 506.00p -2.97%
Kazakhmys (KAZ) 1,156.00p -2.94%
Lonmin (LMI) 2,695.00p -2.74%
Corus Group (CS.) 408.00p -2.68%
Man Group (EMG) 2,342.00p -2.66%
ICAP (IAP) 457.25p -2.35%
FTSE 250 - Risers
McCarthy and Stone (MCTY) 1,048.00p +11.25%
Wilson Bowden (WLB) 1,450.00p +5.07%
Matalan (MTN) 176.50p +3.07%
Misys (MSY) 232.25p +2.88%
Wellington Underwriting (WUN) 81.75p +2.51%
Randgold Resources (RRS) 1,214.00p +2.02%
Ultra Electronics (ULE) 907.50p +1.97%
Taylor Nelson Sofres (TNN) 169.50p +1.80%
Edinburgh US Tracker (EUS) 547.00p +1.48%
Invensys (ISYS) 17.50p +1.45%
FTSE 250 - Fallers
Hikma Pharmaceuticals (HIK) 335.00p -5.63%
Ashtead Group (AHT) 149.00p -5.25%
JKX Oil & Gas (JKX) 346.75p -5.00%
Inchcape (INCH) 456.50p -4.60%
Countrywide (CWD) 440.00p -4.50%
EMI (EMI) 267.00p -4.13%
Jardine Lloyd (JLT) 334.00p -3.82%
888 Holdings (888) 193.00p -3.50%
Aggreko (AGK) 257.25p -3.38%
Paragon Group (PAG) 576.50p -3.35%
