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.
Low volumes also added to lacklustre trading on the Footsie, while there was was n
o guidance from Wall Street as US markets were closed for the Independence Day holiday.
The FTSE 100 closed up two points at 4236.3 after more gloom in the UK economy.
The Chartered Institute of Purchasing and Supply posted an activity index of 51.6 from the services sector – down from the previous month's 51.7 when the sector notched its first month of growth since April last year.
But London's blue-chip index at least stemmed the losses seen in the previous session after grim US unemployment data caused shares worldwide to slide on Thursday afternoon, with the FTSE 100 down more than 2 per cent.
The 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 7 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 in the session as the under-pressure company post-ed traffic figures for June and announced more cost cutting and plans to shed around 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 2008 – shares held on to gains seen earlier after Nomura started coverage of the carrier at neutral. The stock closed up 6.5p to 125.5p.
Another leading Footsie riser was publishing and media group Reed Elsevier, which gained 17.25p or 457.25p or 4 per cent after Credit Suisse brokers upped the European media sector to overweight.
Banks also featured on the risers board in a decent finish to the week, 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.
In the FTSE 250 transport group Arriva lost 18.25p to 386.75p despite a buy recommendation from Nomura.
Other stocks favoured by the firm in the sector, Stagecoach and Go-Ahead, rose 1p to 127.5p and 11p to 1179p respectively.
The full article contains 477 words and appears in The Scotsman newspaper.
