Footsie follows Wall Street south: Thursday close from the London Stock Exchange

By DAILY MAIL REPORTER
Updated:

A lacklustre day of trading saw losses for financial and property stocks as the market struggled to find direction.

Despite gains on Wall Street in early U.S. trade, the Footsie closed down 28.7 points at 4387.5.

The Dow Jones Industrial Average was up slightly - 6.5 points to 8,306.6 - as a surge in the wake of an offer of a deal with bondholders in General Motor's bankruptcy plans was knocked by disappointing housing data.

All the latest news from the London Stock Exchange

All the latest news from the London Stock Exchange

Worries over the future of GM had sent the U.S. market down 2 per cent yesterday, causing a tremor across Europe today.

Oil prices were boosted as the Opec oil cartel announced plans to keep production at present levels. The price of crude jumped to as much as $64.19 a barrel on the New York Mercantile Exchange - the highest since November.

Oil giant BP was one of the London market's few risers, climbing 3.25p at 508.25p, with the higher oil prices adding support. Royal Dutch Shell also rose, up 17p at 1645p.

Financial services and hedge fund firm Man led the fallers, off 7 per cent or 17.25p to 232.75p after it announced a 64 per cent fall in full-year profits and said funds under management had declined since its last update in March.

This raised fears about its 2010 performance, even though today's results were ahead of hopes.

Other financial sector stocks under pressure included the banks, with Royal Bank of Scotland down 4 per cent - or 1.8p - at 37.4p and Barclays, off 3p at 287p, as well as insurers led by Prudential, 14.25p lighter at 424p.

A mixture of stocks were hit by the general downbeat investor sentiment, including British Land with a fall of 22.75p to 386.5p, despite Goldman Sachs upping its target price. Hammerson was also off 9.5p at 287p.

And P&O firm Carnival climbed the fallers board amid news that its cruise liner Pacific Dawn was asked to cut short its trip to the Great Barrier Reef and northern Queensland, Australia, over concerns about three passengers infected with swine flu. Shares fell 100p to 1575p.

Among the few risers were more defensive stocks, including British Gas parent Centrica, 0.75p better at 249.5p.

In the FTSE 250, building supplies firm Wolseley was another heavy faller after chief executive Chip Hornsby reported a near 90 per cent fall in profits and said trading conditions were likely to remain tough for some time. Shares fell 18 per cent or 223p to 1005p.

Soft drinks firm Britvic meanwhile added 3.25p to 278.25p after it emerged that private equity firm Permira had sold its 13 per cent share in the business.

The biggest Footsie risers were Cairn Energy up 83p at 2456p, Fresnillo up 23p at 702p, Randgold Resources up 131p at 4388p and Tullow Oil up 24.5p at 1019p.

The biggest Footsie fallers were Man Group down 17.25p at 232.75p, Carnival off 100p to 1575p, British Land down 22.75p to 381.5p and Schroders down 39p at 716.5p.

TOMORROW'S AGENDA

All the green shoots talk has started to lift Britain's mood. GfK/NOP's survey is expected to show that sentiment hit a 13-month high this month on hopes that the rate of economic contraction is now slowing. However, any improvement in consumer confidence will have been limited by concerns over the extent to which taxes will rise and public spending will be cut in wake of the Budget.

Howard Archer, chief economist at Global Insight, forecasts the index will rise to -25 in May, having hit a record low of -39 last July.

Poor Mike Ashley. The Newcastle United owner's week will go from bad to worse when Blacks Leisure, the retailer in which he holds a 29 per cent stake, posts full-year results. Just a few days after watching his beloved team being booted out of the Premiership, Blacks Leisure is expected to report an £8m pre-tax loss.

The outdoor clothing specialist behind the Millets, Freespirit and O'Neill brands has suffered as 'boardwear' goes out of fashion with surfers and snowboarders, forcing chief executive Neil Gillis to convert some of the struggling stores into shops stocking ordinary outdoor gear.

Investors will be looking for further news of his turnaround strategy. Blacks last week won breathing space with its banks over its borrowing terms.

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