London close: Top stocks close lower
Footsie ended the day in the red as a lacklustre start on Wall Street added to the earlier gloom.
Marks & Spencer's led the fallers as pre-tax profits rose by 28.5% to £965m last year but fell short of £1bn, which disappointed the market. Chief executive Stuart Rose said he is confident of further progress despite tough conditions. Home Retail fell in sympathy.
GlaxoSmithKline continued yesterday's slides despite denying a report in the New England Journal of Medicine, which suggested that its Avandia drug increases the risk of death from heart problems. Analysts have started downgrading the stock with ABN Amro cutting the drug major to 'hold' from 'buy'.
British Airways was unsettled by the news it is joining a consortium led by Texas Pacific Group, the US private equity firm, to explore a takeover bid for Spain's Iberia airline.
Banks helped to lighten the mood. Standard Chartered was among the top risers on vague bid speculation while mortgage bank Alliance Leicester also went well following a UBS "buy" recommendation.
Broker recommendation also helped plumbing supplies outfit Wolseley after ABN Amro put a 'buy' note and hiked its target to 1,570p from 1,375p. But media firm ITV slipped after Morgan Stanley cut the broadcaster to 'equal-weight' to 'overweight'.
Yellow Pages publisher Yell picked up as its full year figures revealed no more deterioration in the US. Adjusted earnings before interest, tax, depreciations and amortisation for the year ended 31 March rose 34.7% to £677.5m on revenue up 28% to £2.075bn.
Pub group Mitchells & Butlers confirmed it is exploring a 50:50 joint venture on a majority of property assets, with shareholder Robert Tchenguiz, the likely partner. MAB added that revenue in the sixteen weeks since 12 May has shown good growth with same outlet like-for-like sales 3.2% ahead of last year and 1.9% ahead on an uninvested basis.
British Land's net asset value per share rose 13% to 1,682p in the year to end-March from 1,486p, slightly above consensus forecasts. British Land added it will raise the dividend in the coming year by 65% to 33p.
Publisher and media group EMAP's profits for the year to March came in smack in line with forecasts at £193m against £223m last time.
Software house LogicaCMG warned revenues and margins in the UK will be down in the first half, with full year revenue slightly lower than 2006.
Mortgage lender Paragon reported an 11% hike in first half pre-tax profit, driven by continuing activity in the buy-to-let business. Shares in the group however fell to profit taking.
Also on the FTSE 250, services group Mitie is up on favourable comments after yesterday's figures. Homeserve has recovered after a sell-off yesterday on its approach to Domestic & General while bumper figures today have given SSL a boost.
Kingston Communications is lower after Hull Council placed its entire 30.6% stake in the telecoms group.
Inter Link Foods slumped today as potential bidder McCambridge said it is considering withdrawing its initial unsolicited approach for the cake and malt loaf maker.
CNG Travel, the technology solutions provider for the travel industry, has recommended an offer worth approximately £9.15m from Corporate Travel Holdings, a consortium that includes members of the CNG management team.
FTSE 100 - Risers
BT Group (BT.A) 317.75p +3.42%
Yell Group (YELL) 505.00p +3.27%
Alliance and Leicester (AL.) 1,183.00p +3.14%
Standard Chartered (STAN) 1,644.00p +2.62%
Mitchells & Butlers (MAB) 898.00p +2.34%
Wolseley (WOS) 1,334.00p +2.14%
Man Group (EMG) 584.00p +1.65%
Bradford & Bingley (BB.) 455.00p +1.22%
Carnival Corporation (CCL) 2,569.00p +1.10%
Land Securities (LAND) 1,916.00p +0.90%
FTSE 100 - Fallers
Marks & Spencer Group (MKS) 703.50p -4.74%
Experian (EXPN) 585.50p -2.98%
(Article continues below)Advertisement
British Airways (BAY) 466.50p -2.81%
Home Retail Group (HOME) 479.50p -1.79%
Centrica (CNA) 388.50p -1.65%
BP (BP.) 581.50p -1.44%
GlaxoSmithKline (GSK) 1,371.00p -1.37%
Reckitt Benckiser (RB.) 2,727.00p -1.37%
ITV (ITV) 116.40p -1.36%
BHP Billiton (BLT) 1,206.00p -1.31%
FTSE 250 - Risers
Mitie Group (MTO) 271.25p +5.54%
Rank Group (RNK) 203.25p +4.23%
Pennon (PNN) 657.00p +4.20%
Euromoney Institutional Investor (ERM) 659.00p +3.86%
Britvic (BVIC) 388.00p +3.47%
Cairn Energy (CNE) 1,888.00p +3.45%
Dimension Data (DDT) 56.25p +3.21%
Homeserve (HSV) 1,888.00p +2.94%
Abbot Group (ABG) 288.00p +2.86%
PartyGaming (PRTY) 40.75p +2.52%
FTSE 250 - Fallers
LogicaCMG (LOG) 164.25p -9.00%
Topps Tiles (TPT) 268.25p -6.45%
Paragon Group (PAG) 538.50p -5.86%
Autonomy (AU.) 764.00p -5.03%
Stagecoach Group (SGC) 183.25p -3.93%
Soco International (SIA) 1,490.00p -3.43%
Computacenter (CCC) 255.50p -3.31%
Atkins (WS) (ATK) 1,120.00p -3.20%
Taylor Nelson Sofres (TNS) 256.00p -2.48%
Hochschild Mining PLC Ord 50p (WI) (HOC) 309.00p -2.29%
