Market Report: Traders blame the tumbling Dow

FOOTSIE yesterday saw all of this year's gains wiped out by the latest downhill swoop of its recent roller-coaster ride. All the hard work and long hours put in by City traders since New Year's Day was swept away in a sea of red.

As with other recent debacles, Square Mile traders declined to accept any responsibility, pointing their fingers at Wall Street. "It was the Dow wot done it," they said, blaming another large opening loss in the US as the trigger for the fall. The result was a 117.1-point deficit which left Footsie at 5,118.7, just below its 5,135 start-of-year level. The second liners were also battered, with the mid-cap ending 63.2 lower at 4,648.8 and the small cap losing 13.1 to 2,068.2

Enterprise Oil typified Footsie's plight. The oil exploration and production outfit lost 12.1 per cent to close at 325p after it reported that first- half net income had been savaged by the low crude oil price. The results reawakened fears of a massive dividend cut at the full-year stage. More importantly, yesterday's fall in market value will ensure an end to Enterprise's chequered life on the Footsie. Ejection from the blue-chip index at next week FTSE meeting is now certain. Enterprise's figures put a dampener on other oil stocks, with Premier Oil losing 6.5 per cent to 25p and Lasmo down 5p to 154p. Shell was also down 5p to 330p despite confirmation of the oil giant's much-rumoured link of its downstream operations with rival Texaco.

Worries about exposure to Russia's crumbling financial system continue to haunt the banks. Barclays, the only one to come clean so far with a bigger-than-expected Russian provision, lost 89p to 1,194. Its high-street rivals, still to inform the market on the scale of their involvement with Moscow, were also under pressure. Lloyds TSB posted a 54p deficit to 657p, while NatWest Bank fell 59p to 941p and Royal Bank of Scotland settled 42p lower to 845p. Schroders, the City merchant bank, was also among the Footsie's biggest losers, sliding 155p to 1,251p with dealers whispering about concern over its Asian exposure and general jitters about the forthcoming results.

The financial sector was spared a complete rout by Cattles. The door- to-door lender, usually considered the high street banks' poor relation, was one of the mid cap's better performers, rising 27.5p to 563.5p after a glittering set of interims.

Supermarkets were prominent among the handful of Footsie risers. They were boosted by their traditional defensive qualities and by a set of broadly encouraging trading figures. Safeway was the second-biggest climber in the blue-chip charts, rising 11p to 333p on the back of a good year- on-year increase in sales. Asda, its one-time suitor, rose 2.75p to 187.5p. Some City types seem convinced that a tie-up between these two could still happen and could be made easier by their subdued share prices. Morrison Supermarkets, the northern chain, benefited from the trend and closed 3.9 per cent higher at 270p. Sainsbury, down 9.5p to 524p, and Tesco, down 6.5p to 173.5p, did not join in the food bonanza as the market took a dim view of their trading numbers.

Reed International, the Anglo-Dutch publishing giant, topped the list of Footsie risers as brokers warmed to its safe-haven status and deemed that the recent sell-off had gone too far. Their advice pushed the stock up 36.5p to 470p. Granada received a similar treatment, rebounding after some lean months. The media-to-hotels conglomerate continued Wednesday's positive run and rose a further 3 per cent to 802p.

But Granada was one of the few bright spots among media stocks: the sector is still reeling from Wednesday's warning of fading advertising revenue from Maiden, the posters group. Maiden itself rebounded 57.5p to 270p, but yesterday's victim was Newsquest. Fears of an advertisers' flight from its regional newspapers sent the shares down almost 10 per cent to 225p, the worst performance on the mid cap. EMAP, the magazine publisher, followed suit, shedding 45p to 895p. Daily Mail & General Trust was another of the unwanted paper giants. The uncertainty surrounding the company after the death of the charismatic Lord Rothermere pushed it down 182p to 2,218p.

The good news of the day came from just a few results. Amec, the building group, engineered a 10p rise to 149p after a 20 per cent hike in dividend and a bullish trading statement. Amec's optimism dragged up housebuilder Wimpey, up 3p to 103p, building materials stalwarts Hanson, up 9p to 314p, and Hewden Stuart, up 3p to 130p. Man ED&F, the asset-brokerage-to alcohol conglomerate, put on a spirited 16.5p to 320p after telling investors of a strong start of the year.

Marchpole, a licensee for Yves Saint-Laurent clothes, took a very uncool pasting. The shares of the recently-floated minnow halved to 18.5p after a bearish trading update and poor interim profits.

Mayborn, the maker of the Tommee Tippee range of baby products, suffered a similar fate, plunging 28 per cent to 65p after issuing a profits warning.



GILTS INDEX: 108.20 +0.39

Nigel Wray, the property tycoon, yesterday made around pounds 9.2m from the sale of 10m shares in Burford Holdings, the real estate group he chairs. Shares in Burford, which owns the Trocadero amusement arcade in London, rose 1p to 95p. Mr Wray said he will use the money to invest in his other interests. The announcement will delight Nottingham Forest football club fans, where Mr Wray invests. Some money for new players could be on the way.

Vanguard Medica rose 40p to 270p. The biotech group is about to sign a multi-million pound deal with pharmaceutical giant, to be chosen from Novartis, Roche, Johnson & Johnson and Bristol Myers Squibb, to market an anti-migraine drug.

Silk Industries plunged 22 per cent to 63.5p after the weaving company warned that interim profits would be below last year's pounds 1.1m.

newsGlobal index has ranked the quality of life for OAPs - but the UK didn't even make it into the top 10
peopleStella McCartney apologises over controversial Instagram picture
Life and Style
Laid bare: the Good2Go app ensures people have a chance to make their intentions clear about having sex
techCould Good2Go end disputes about sexual consent - without being a passion-killer?
Arts and Entertainment
Richard Burr remains the baker to beat on the Great British Bake Off
tvRichard remains the baker to beat as Chetna begins to flake
footballArsenal 4 Galatasaray 1: Wenger celebrates 18th anniversary in style
Arts and Entertainment
Amazon has added a cautionary warning to Tom and Jerry cartoons on its streaming service
The village was originally named Llansanffraid-ym-Mechain after the Celtic female Saint Brigit, but the name was changed 150 years ago to Llansantffraid – a decision which suggests the incorrect gender of the saint
newsA Welsh town has changed its name - and a prize if you can notice how
ebooksAn unforgettable anthology of contemporary reportage
Arts and Entertainment
Kristen Scott Thomas in Electra at the Old Vic
theatreReview: Kristin Scott Thomas is magnificent in a five-star performance of ‘Electra’
Destructive discourse: Jewish boys look at anti-Semitic graffiti sprayed on to the walls of the synagogue in March 2006, near Tel Aviv
peopleAt the start of Yom Kippur and with anti-Semitism flourishing, one Jew can no longer ignore his identity
Life and Style
Couples who boast about their relationship have been condemned as the most annoying Facebook users
Arts and Entertainment
Hayley Williams performs with Paramore in New York
musicParamore singer says 'Steal Your Girl' is itself stolen from a New Found Glory hit
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating

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

iJobs Job Widget
iJobs Money & Business

Trainee Recruitment Consultant - Birmingham - Real Staffing

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

Trust Accountant - Kent

NEGOTIABLE: Austen Lloyd: TRUST ACCOUNTANT - KENTIf you are a Chartered Accou...

Graduate Recruitment Consultant - 2013/14 Grads - No Exp Needed

£18000 - £20000 per annum + OTE £30000: SThree: SThree are a global FTSE 250 b...

Law Costs

Highly Competitive Salary: Austen Lloyd: CITY - Law Costs Draftsperson - NICHE...

Day In a Page

Italian couples fake UK divorce scam on an ‘industrial scale’

Welcome to Maidenhead, the divorce capital of... Italy

A look at the the legal tourists who exploited our liberal dissolution rules
Tom and Jerry cartoons now carry a 'racial prejudice' warning on Amazon

Tom and Jerry cartoons now carry a 'racial prejudice' warning on Amazon

The vintage series has often been criticised for racial stereotyping
An app for the amorous: Could Good2Go end disputes about sexual consent - without being a passion-killer?

An app for the amorous

Could Good2Go end disputes about sexual consent - without being a passion-killer?
Llansanffraid is now Llansantffraid. Welsh town changes its name, but can you spot the difference?

Llansanffraid is now Llansantffraid

Welsh town changes its name, but can you spot the difference?
Charlotte Riley: At the peak of her powers

Charlotte Riley: At the peak of her powers

After a few early missteps with Chekhov, her acting career has taken her to Hollywood. Next up is a role in the BBC’s gangster drama ‘Peaky Blinders’
She's having a laugh: Britain's female comedians have never had it so good

She's having a laugh

Britain's female comedians have never had it so good, says stand-up Natalie Haynes
Sistine Chapel to ‘sing’ with new LED lights designed to bring Michelangelo’s masterpiece out of the shadows

Let there be light

Sistine Chapel to ‘sing’ with new LEDs designed to bring Michelangelo’s masterpiece out of the shadows
Great British Bake Off, semi-final, review: Richard remains the baker to beat

Tensions rise in Bake Off's pastry week

Richard remains the baker to beat as Chetna begins to flake
Paris Fashion Week, spring/summer 2015: Time travel fashion at Louis Vuitton in Paris

A look to the future

It's time travel fashion at Louis Vuitton in Paris
The 10 best bedspreads

The 10 best bedspreads

Before you up the tog count on your duvet, add an extra layer and a room-changing piece to your bed this autumn
Arsenal vs Galatasaray: Five things we learnt from the Emirates

Arsenal vs Galatasaray

Five things we learnt from the Gunners' Champions League victory at the Emirates
Stuart Lancaster’s long-term deal makes sense – a rarity for a decision taken by the RFU

Lancaster’s long-term deal makes sense – a rarity for a decision taken by the RFU

This deal gives England a head-start to prepare for 2019 World Cup, says Chris Hewett
Ebola outbreak: The children orphaned by the virus – then rejected by surviving relatives over fear of infection

The children orphaned by Ebola...

... then rejected by surviving relatives over fear of infection
Pride: Are censors pandering to homophobia?

Are censors pandering to homophobia?

US film censors have ruled 'Pride' unfit for under-16s, though it contains no sex or violence
The magic of roundabouts

Lords of the rings

Just who are the Roundabout Appreciation Society?