Top flight stocks stayed in positive territory today despite the second attack on London’s transport system in as many weeks.
The FTSE 100 Index slipped from an intra-day high of 5256 to a 35-point loss following the latest explosions across the capital, but recovered to end the day 6.4 points up at 5221.6.
In New York, Asda owner Wal-Mart led US stocks down amid concerns that a Chinese decision to loosen its fixed exchange rate against the dollar will increase costs for companies that buy goods from China.
The Dow Jones Industrial Average was 59.7 points off just after London’s close.
Back in London, the heaviest fallers following initial news of the latest attacks included British Airways and cruise operator Carnival.
However, both recovered somewhat, with BA closing the day down a penny at 275p and Carnival losing 2p to 3165p.
On the economic front, monthly growth in high street sales rose to its highest level for more than a year. This dampened hopes for a string of interest rate cuts, although analysts said an August reduction remained on the cards.
Plasterboard manufacturer BPB was the top FTSE riser, up more than 26% or 136p to 648.5p after French glass and building materials group Saint-Gobain said today it was mulling a takeover offer.
Miners performed well with shares in BHP Billiton and Rio Tinto reaching their highest mark since the millennium.
BHP Billiton added 10p to 782p in the wake of yesterday’s statement from Rio Tinto – up 24p to 1862p – that demand for metals remained strong and most of its operations were producing close to capacity.
Rival Anglo American was close to the top of the FTSE with a 35p gain to 1373p.
Investors had initially shown interest in the UK shares of newly unified oil giant Royal Dutch Shell but the shares later fell back.
Its “B” shares weakened by 8p at 1798.5p while shares originating from the Dutch side of the operation fell 13.5p to 1753p.
Corporate updates were clustered in the retail sector where Boots rose 2.5p to 615.5p despite posting a 0.8% decline in same-store sales at its Boots the Chemists outlets.
Dixons lost 1.25p to 157.75p as investors speculated that it could be suffering the same problems as rival Kesa, which told investors today that sales at its Comet chain had worsened. Kesa weakened 8.25p at 259.75p in the FTSE 250 Index.
But a bright spot in the sector was second-tier furniture retailer MFI – up more than 4% or 5.5p to 120.75p – after it offered hope that its supply chain troubles were over and its interim profits fell by less than expected by the City.
Shares in JD Sports owner John David Group dropped 2p to 220p after it said it managed to grow sales over the past month despite slowing spending and the impact of the London bombings.
The biggest risers were BPB up 136p to 648.5p, Reckitt Benckiser gaining 55p to 1681p, Standard Chartered adding 35p to 1140p and Hanson lifting 14p to 547.5p.
Biggest fallers were Amvescap down 9.25p to 401p, BG Group easing 8.5p to 450.25p, Unilever weakening 9p to 557p and BP off 6.5p to 618.5p.
References: EGi News 21/07/05
