Weak Financials Drag FTSE Lower

Ivaylo
10 Jan, 2007
New York City

Financial stocks plunged following a strong showing in the previous session on comment from Lehman Brothers, stating that it expects the sector to underperform its European peers. Energy stocks were also lower, with Scottish & Southern Energy leading the decliners in the sector. Supermarket William Morrison is the best performer on the market as it reported upbeat same-store sales. By mid-afternoon, the FTSE 100 was down 32.8 points, or 0.45%, at 6.168.

[R]9:30AM NY- 2:30PM London The FTSE 100 declined Wednesday on financials.[/R]
By mid-afternoon, the FTSE 100 in London shed 32.8 points, or 0.45%, at 6.168.

Advancers

Supermarket William Morrison leads the gainers as it announced that same-store sales during the 6 week Christmas and New Year period rose by 6.3% excluding fuel and by 6.0% including fuel. The company advanced 5.56%.

Semiconductor designer ARC International surged to its highest level in over a year today as it announced second half and the full year revenue are expected to top forecasts. The company advanced 8.21%.

Biocompatibles, the pharma company, has predicted 2007 sales growth of 50%. The company gained 5.50%. JJB Sports, the sportswear retailer, stated it remains satisfied with its second half performance to date and festive trading period. The group gained 3.82%.

Property website Rightmove is still in focus following the bullish trading statement yesterday as UBS upgraded the shares to buy from neutral and hiked it price target. The company added 7.87%. Royal Dutch Shell also advanced on talk that OPEC is likely to consider more production cuts.

Decliners

Telecoms recruitment firm Glotel led the decliners, down 10.40%, though it warned that delays in US contracts would mean profits missing expectations this year. Mobile company Vodafone, down 1.51%, will make a bid for 67% stake in Hutchison Whampoa in India Hutchison Essar in the near future, chief executive Arun Sarin said today.

Northern Rock led the decliners in the banking sector. The company was off 2.17%. Legal & General also retreated 2.3%. Menswear retailer Moss Bros announced pre-tax profit is expected to be lower than the year before, as it struggles against a difficult menswear market. The company lost 0.66%.

Credit firm Experian gave up its earlier gains after it reported a 20% increase in third-quarter sales from continuing operations. Experian declined 1.26%.