Market report: Friday close

By THIS IS MONEY
Updated:

 

AN EARLY sell-off on Wall Street pegged back blue-chip prices in late London trade.

The City received a boost after an agreed counter-bid for Debenhams, up 23 1/2p to 458 1/2p, sparked hopes of other High Street takeovers.

But disappointing US retail and consumer data stoked fears that America's economic revival remains some way off. US stocks fell, dragging their London counterparts with them. The FTSE 100, ahead more than 30 points earlier in the session, finished down 4.4 at 4237.8.

The Debenhams deal drew buyers to other retailers. WH Smith added 2 1/2p to 354 1/4p and Next Group climbed 22 1/2p to 1141p. Next reports first-half figures on Thursday, alongside supermarkets group Wm Morrison, up 3 1/4p at 214 1/2p.

Possible bid target House of Fraser gained 1/2p to 94 1/2p. Rumours of share sales by the Sainsbury family, who control 35% of the equity, lifted the grocer 10p to 279p.

Banks declined following the US economic data, the exception being Barclays, up 14 3/4p to 481p. Royal & SunAlliance defied sceptics of its £960m rights issue to add 3/4p to 115p. Talk of a share buyback pushed Royal Bank of Scotland up 10p to 1580p.

ICI was a casualty, down 5 1/2p to 182 1/2p as Smith Barney downgraded the chemicals and paints group to 'underperform'.

Acambis soared 15p to 381 1/2p following research at Virginia's George Mason University that suggested its smallpox vaccine may help protect people from Aids.

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