THE FTSE 100 Index clung to its opening mark yesterday as progress was held back by poor corporate news flow and disappointing figures from the key services sector.
The FTSE 100 closed up two points at 4236.3 after more economic gloom in the UK.
Worries over global economic growth were again reflected in trading for mining shares, with Kazakhmys down 16p at 630p, Xstrata falling 9.6p at 654.8p and Vedanta Resources off 19p at 1369p.
Insurer Friends Provident led the fallers board, down seven per cent or 4.58p, to 63.51p, as shares adjusted for the disposal of its majority stake in F&C Asset Management to its shareholders. The move will allow Friends to focus on the task of reviving its core business.
British Airways attracted interest late as the under-pressure company posted traffic figures for June and announced more cost cutting and plans to shed nearly 3,700 jobs this financial year. Despite revealing that it carried 2.93 million passengers last month – 4.9 per cent fewer than in June last year – shares held on to gains seen earlier. The stock closed up 6.5p to 125.5p.
Another leading riser was publishing and media group Reed Elsevier, which gained 17.25p or 457.25p or four per cent.
Banks also featured on the risers board, with Barclays ahead 8p to 297p, HSBC 8.7p stronger at 509p and Lloyds Banking Group up 1.6p at 67.5p.
Royal Bank of Scotland joined the hunt with shares up 0.89p to 38.79p.
But Balfour Beatty shares were 7.75p lower at 300.5p, even though the construction firm said it had been trading in line with expectations.
Arriva lost 18.25p to 386.75p despite a buy recommendation from Nomura.
Stagecoach and Go- Ahead, rose 1p to 127.5p and 11p to 1179p respectively.
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