LONDON (ShareCast) - London’s blue chips have dipped into negative territory as struggling miners drag the index lower on falling metals prices.
Mining stocks account for seven of the ten worst performing Footsie stocks, with Kazakhmys, Eurasian Natural Resources, Anglo American, Xstrata, Vedanta and Antofagasta the hardest hit.
The other three places in the bottom ten are occupied by ICAP and travel companies Thomas Cook and Holiday Inns owner InterContinental Hotels Group.
Thomas Cook is weaker on further consideration of its recent results while InterContinental Hotels is hit by a downgrade from Morgan Stanley. The US investment bank prefers other stocks in the hospitality sector, and has reduced its rating of InterContinental Hotels to ‘underweight’ from ‘equal-weight’.
On the upside, retailers are cheered by an upbeat trading statement from department store group and Waitrose owner John Lewis Group. Next Group and Marks & Spencer are the pick of the sector, while electricals retailer Kesa performs well among the second-liners.
The dollar’s rise against sterling prompted JP Morgan to raise its target price on medical devices group Smith and Nephew to 610p from 585p.
UBS has lowered its rating on Logica to ‘sell’ from ‘neutral’, saying Thursday’s results showed stagnant margins at the software group.
Recruitment group Michael Page has broken off talks with potential bidder Adecco saying its offer of about 400p per share "materially undervalued" the group. It added the proposed transaction structure was unattractive for shareholders as they would become minority shareholders in a company controlled by Adecco.
Music group Chrysalis has warned of a loss in the 13 months to September similar to the first seven months of the period. It blamed a relatively quiet period for new releases in the last three months of the year and the challenging macroeconomic environment and its impact on both physical sales and synchronisation revenues. Net publishing revenue for the 13 month period to 30 September will be lower than for the same period in 2007.
Wood treatment group Accsys Technologies reports a good start to the new financial year, with continuing strong momentum despite the general economic climate. The company's first licensee, Diamond Wood China Limited has further extended their commitment to the manufacture of Accoya wood, it added.
Turbo Power Systems has had to amend the terms of a loan note so that the designer and manufacturer of power solutions can draw down a further £1.5m and keep the business going.
Gene therapy company Oxford Biomedica has rejected an indicative approach from tiny US firm GeneThera as “not credible”.
Online travel agent Travelzest confirmed that it is in the early stages of discussions over a potential cash offer for the company at a price of 115p per share.
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