Market Report: Clinton crisis takes toll on Footsie

THE SPECTRE of more humiliation for President Bill Clinton demoralised shares, with Footsie suffering one of its biggest one-day falls since the 1987 crash.

The index ended 174.7 points down at 5,136.6, with the Dow Jones Average off more than 200 points as the stock market closed.

It was a tense, nervous session with only 11 Footsie constituents managing to make any progress. The despair was not confined to the leader board. with the mid cap index slumping 59.9 to 4,751.8 although the small cap indicator displayed relative strength by restricting its retreat to 11.4 at 2,101.4.

Ironically the growing Clinton crisis took its toll as the Moscow share market, which had cast such a dark shadow over western markets, staged something of a rally following President Yeltsin's latest nomination for Prime Minister.

The Monetary Policy Committee's no-change interest rate decision was another blow. The committee's hint that rates have probably peaked was, however, lost in the clouds of gloom sweeping across the Atlantic.

Smiths Industries was one blue chip to make progress. As if celebrating their escape from relegation from Footsie, the shares rose 18p to 733p. The engineering to medical group was bitter early last month when rogue trades went through the order book at 711p; as it pointed out at the time, if they had occurred when the Footsie reckoning took place Smiths would have lost its cherished index place.

Centrica had the distinction of heading the truncated leader board following a strong profits performance. The shares jumped 9.25p to 108p.

Railtrack, up 45p to 1,495p, was encouraged by recent presentations in Paris and indications that the Government's public transport policy had not after all been shunted into the sidings. Stagecoach, with a 25p advance to 1,145p, was also a beneficiary.

Hopes of corporate activity as well as safe haven considerations continued to inspire the English generators, with National Power up 10p to 526p and PowerGen 12p to 830p. Other utilities, such as Thames Water, with an 8p gain to 1,100p, drew comfort from their heavy domestic exposure.

Poor old BTR, with a set of calamitous figures, led the retreat, off 24.5 to 107.75p, a new low. The warrants, which offer the "right" to subscribe for new shares at 405p, also fell from 0.06p to 0.05p. Before BTR's troubles became apparent they were 77p with the shares then nudging 400p.

Buy advice had little impact. Henderson Crosthwaite recommended Kingfisher only for the shares to fall 16p to 518p. Lehman Brothers offered a 930p target for new Footsie stock Colt Telecom but the shares fell 22.5p to 602.6p. Dixons did manage a 6p gain to 588p as HSBC made positive noises.

Vodafone, which completed its European investment presentations, was off 16p at 766p.

Marks & Spencer dropped 20p to 474p, lowest for more than a year. Two investment houses downgraded profit estimates. ABN Amro went from pounds 1.05bn to pounds 1.03bn and Merrill Lynch from pounds 1.06bn to pounds 990m.

Football clubs, reflecting activity off rather than on the pitch, had a rousing session. After Manchester Utd it was the turn of doubles club Arsenal to score.

The shares, traded on the fringe Ofex market, jumped pounds 1,100 to pounds 4,000 as Carlton Communications said it was in talks which could lead to a takeover. The club is valued at around pounds 240m. Carlton eased 2p to 423p.

ManU continued its progress following the agreed BSkyB bid, adding 6.5p to 222p. Others to move ahead included Aston Villa, 27.5p to 660p, Chelsea Village, 10p to 86.5p, and Leeds Sporting 3p to 19.75p. Tottenham Hotspur improved 2p to 66p with talk of a large buyer, prepared to pay 67p, hovering. ENIC, which has stake in a number of clubs including Glasgow Rangers, put on 8.5p to 147.5p.

ML Laboratories firmed 2p to 67p with Proteus International adding 1.5p to 38p. Both are in the orbit of Kevin Leech and the resilience of the shares on such a downbeat day prompted speculation of a merger.

Henlys held at 455p as Volvo moved its stake to 9.5 per cent. It has said it intends to go to 10 per cent.

Car Group, the second-hand dealer, reversed 0.5p to 9p as stories went the rounds that its refinancing was imminent although it was thought unlikely to offer any share enhancement. Springwood, the leisure group, shaded to 83.5p although chairman Adam Page was said to have made positive presentations to institutions.

Marston Thompson & Evershed, the Pedigree bitter brewer, rose 13.5p to 224p after disclosing talks which could lead to the securitisation of its tenanted pubs. Royal Doulton cracked 27.5p to 106p, a low, after a gloomy statement.

Engineer UPF remained at 112p as bidder Hartrade said it had gathered acceptances representing 95 per cent of the capital.

SEAQ VOLUME: 1.09bn

SEAQ TRADES: 59,194

GILTS INDEX: 109.73 +1.12

MICHAEL ASHCROFT, the controversial tycoon, is not enjoying a rapturous welcome on his return to the stock market. The property group Carlisle, his comeback vehicle, fell 1p to 10p. When the Ashcroft excitement was at its height, the shares touched 18p. Carlisle is being reshaped into a services group. It will be headed by Mr Ashcroft, who created the ADT car auction to security group. He will have a controlling stake.

EMERALD ENERGY enjoyed one of its periodic bouts of excitement. The shares rose 0.5p to 7.25p with nearly 23 million traded. T Hoare & Co, the stockbroker specialising in resources stocks, is not keen on the Colombian explorer and suggests taking profits.

SHERWOOD INTERNATIONAL, the computer group, jumped 100p to 925p after buying a 12.65 per cent stake in Allenbrook, a US provider of casualty and property systems.

Voices
A Russian hunter at the Medved bear-hunting lodge in Siberia
Save the tigerWildlife charities turn to those who kill animals to help save them
News
Davis says: 'My career has been about filling a niche - there were fewer short actors and fewer roles – but now I'm being offered all kinds of things'
PeopleWarwick Davis on Ricky Gervais, Harry Potter and his perfect role
News
i100
Sport
Frank Lampard will pass Billy Wright and equal Bobby Charton’s caps tally of 106 caps against
sportFormer Chelsea midfielder in Etihad stopgap before New York contract
PROMOTED VIDEO
Arts and Entertainment
The first film introduced Daniel Radcliffe to our screens, pictured here as he prepares to board the train to Hogwarts for the first time.
booksHow reading Harry Potter helps children grow up to be gay-friendly
Arts and Entertainment
A scene from Aladdin is performed at the Tony Awards in New York in June
theatreBrit producer Lythgoe makes kids' musical comedy a Los Angeles hit
Sport
Usain Bolt of Jamaica smiles and shakes hands with a competitor after Jamaica won their first heat in the men's 4x100m relay
sport
News
Chancellor George Osborne, along with the Prime Minister, have been 'complacently claiming the economy is now fixed', according to shadow Chancellor Ed Balls
i100... which is awkward, because he is their boss, after all
Life and Style
A small bag of the drug Ecstasy
Health
Life and Style
Floral-print swim shorts, £26, by Topman, topman.com; sunglasses, £215, by Paul Smith, mpaulsmith.co.uk
FashionBag yourself the perfect pair
News
news
News
ebookA unique anthology of reporting and analysis of a crucial period of history
News
Netherlands' goalkeeper Tim Krul fails to make a save from Costa Rica's midfielder Celso Borges during a penalty shoot-out in the quarter-final between Netherlands and Costa Rica during the 2014 FIFA World Cup
newsGoalkeepers suffer from 'gambler’s fallacy' during shoot-outs
News
people
Arts and Entertainment
Standing the test of time: Michael J Fox and Christopher Lloyd in 'Back to the Future'
filmReview: A week late, Secret Cinema arrives as interactive screening goes Back to the Future
Extras
indybest
News
i100
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Financial Analyst - Forecasting - Yorkshire

£300 - £350 per day: Orgtel: Financial Analyst, Forecasting, Halifax, Banking,...

Business Architect - Bristol - £500 per day

£500 per day: Orgtel: Business Architect - Banking - Bristol - £500 per day A...

Regulatory Reporting-MI-Bank-Cardiff-£300/day

£200 - £500 per day + competitive: Orgtel: I am currently working on a large p...

Trainee Recruitment Consultant - Birmingham - Real Staffing

£18000 - £23000 per annum + Commission: SThree: Real Staffing are currently lo...

Day In a Page

Save the Tiger: Meet the hunters tasked with protecting Russia's rare Amur tiger

Hunters protect Russia's rare Amur tiger

In an unusual move, wildlife charities have enlisted those who kill animals to help save them. Oliver Poole travels to Siberia to investigate
Transfers: How has your club fared in summer sales?

How has your club fared in summer sales?

Who have bagged the bargain buys and who have landed the giant turkeys
Warwick Davis: The British actor on Ricky Gervais, how the Harry Potter set became his office, and why he'd like to play a spy

'I'm a realist; I know how hard this business is'

Warwick Davis on Ricky Gervais, Harry Potter and his perfect role
The best swim shorts for men: Bag yourself the perfect pair and make a splash this summer

The best swim shorts for men

Bag yourself the perfect pair and make a splash this summer
Has Ukip’s Glastonbury branch really been possessed by the devil?

Has Ukip’s Glastonbury branch really been possessed by the devil?

Meet the couple blamed for bringing Lucifer into local politics
Dress the Gaza situation up all you like, but the truth hurts

Robert Fisk on Gaza conflict

Dress the situation up all you like, but the truth hurts
Save the tiger: Tiger, tiger burning less brightly as numbers plummet

Tiger, tiger burning less brightly

When William Blake wrote his famous poem there were probably more than 100,000 tigers in the wild. These days they probably number around 3,200
5 News's Andy Bell retraces his grandfather's steps on the First World War battlefields

In grandfather's footsteps

5 News's political editor Andy Bell only knows his grandfather from the compelling diary he kept during WWI. But when he returned to the killing fields where Edwin Vaughan suffered so much, his ancestor came to life
Lifestyle guru Martha Stewart reveals she has flying robot ... to take photos of her farm

Martha Stewart has flying robot

The lifestyle guru used the drone to get a bird's eye view her 153-acre farm in Bedford, New York
Former Labour minister Meg Hillier has demanded 'pootling lanes' for women cyclists

Do women cyclists need 'pootling lanes'?

Simon Usborne (who's more of a hurtler) explains why winning the space race is key to happy riding
A tale of two presidents: George W Bush downs his paintbrush to pen father’s life story

A tale of two presidents

George W Bush downs his paintbrush to pen father’s life story
Restaurateur Mitch Tonks has given the Great Western Pullman dining car a makeover

The dining car makes a comeback

Restaurateur Mitch Tonks has given the Great Western Pullman dining car a makeover
Gallery rage: How are institutions tackling the discomfort of overcrowding this summer?

Gallery rage

How are institutions tackling the discomfort of overcrowding this summer?
Louis van Gaal has £500,000 video surveillance system installed to monitor Manchester United players

Eye on the prize

Louis van Gaal has £500,000 video surveillance system installed to monitor Manchester United players
Women's rugby: Tamara Taylor adds fuel to the ire in quest to land World Cup

Women's rugby

Tamara Taylor adds fuel to the ire in quest to land World Cup