Market report: Friday close

By THIS IS MONEY
Updated:

 

LONDON shares ended the week on a low note today amid jitters about possible interest rate hikes in the UK and the United States.

The FTSE 100 index fell below the 4500 level to stand 29.8 points down at 4489.7 by the end of the session. Uncertainty about next week's meeting of the Bank of England's monetary policy committee and the prospect of a US rate rise by the Federal Reserve dragged markets down.

However, the stronger dollar against the pound should help UK exporters and manufacturers in the longer term by making their goods cheaper for US buyers, analysts said.

Shortly after London's close, the Dow Jones Industrial Average stood 26 points ahead.

On a slow day for corporate news in the City, renewed bid talk kept banking group Abbey at the top of the Footsie risers. Shares improved nearly 5% or 20.5p to 452.5p after a newspaper reported that the Santander Central Hispano bank of Spain had made an informal approach about a potential bid.

Pharmaceuticals groups GlaxoSmithKline and AstraZeneca were also near the summit after both companies reported results yesterday. Astra moved up 34p to 2637p while Glaxo gained 10p to 1167p.

British Airways topped the Footsie fallers with a 13.5p drop to 282.5p as investors worried about rising jet fuel prices.

Engines group Rolls-Royce ended on a low, down 1.75p to 231.5p, after unveiling a £100m investment plan.

FT owner Pearson was near the top of the Footsie fallers, down 7.5p to 658p, after saying revenues continued to be unstable in spite of the recovery in the advertising market.

Advertising giant WPP Group moved into the red, off 14.5p at 556p, even though it reported 12% growth in revenues at constant exchange rates during the first three months of this year.

Mining stocks were among the heaviest fallers of the session as Anglo American retreated 28p to 1135p, with Xstrata down 7.5p at 634.5p and Antofagasta losing 10p to 940p.

Outside the top flight, pubs operator Eldridge Pope warned that annual profits would not meet market hopes following a sales slump at its managed estate. The group saw its shares fall more than 5%, or 9.5p to 163.5p.

But a move back into operating profits helped shares in meat and pastry manufacturer Canterbury Foods advance a penny to 32.5p. The improvement came despite a pledge to raise £6.2m via a rights issue.

And Noddy owner Chorion moved 3% higher after agreeing a deal to buy the Mr Men characters for £28m. Shares were up 7p at 213.5p.

editor@thisismoney.co.uk

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