London close: FTSE 100 rally falls short

28th Feb 2011 16:51

The top share index failed to sustain a rally that came on the back of strength in the US and closed a few points lower.A slight easing in the oil price lightened the mood. Crude had edged up in the morning session amid continuing turmoil in Libya and the spread of protests to the Gulf state of Oman. Brent crude for April delivery was above $114 a barrel earlier today but moved back below that level over lunch. Reports say that Oman, which accounts for about 1% of global production, is still delivering oil unhindered.The response to results from banking powerhouse HSBC has been negative. The market had been hoping for pre-tax profits to break through the $20bn barrier, but they fell short by around a billion. The City was also displeased that the outcome of the group's review of its target range for return on equity had been lowered by 3 percentage points at both ends to 12-15% now that the effects of new banking regulations are clearer. Associated British Foods, the foods group that also owns the Primark clothing retailer, fell after it said its interim results will be in line with market expectations, but warned that UK consumer demand is slowing and margins will be under pressure from rising cotton prices in the second half as well as the first.Publishing giant Pearson did better. Profits before tax rose 28% to £670m from £523m the year before on sales that grew 10% to £5,663m from £5,140m in 2009. Revenue was up 8% using constant exchange rates, with growth seen in all of Pearson's businesses (Education + 9%, Penguin +2% and the FT Group +12%).Plastics disposables giant Bunzl is to continue with its acquisition spree despite some concerns over the health of the global economy. Bunzl made nine acquisitions last year, costing £126m and adding £154m in annualised revenue. Revenue overall increased by 4%, from £4.65bn to £4.83bn, in 2010. Underlying profits rose 7% from £258m to £275m, with pre-tax profits up to £225m from £216m.Tesco has signed an agreement to set up a joint venture to develop shopping malls in China. Half of the joint venture will be owned by a consortium of leading Asian investors including Singapore's Metro Holdings.In the FTSE 250, international recruitment firm Hays was a strong performer today after it shrugged off a workaday performance back in Blighty to post a sharp increase in interim profits. "18 countries around the world grew net fees by more than 25%," noted Hays chief executive Alistair Cox. Profit before tax and exceptional items jumped 60% to £48.6m from £30.4m.Bermuda-based specialist insurer Hiscox paid out £165m in claims relating to catastrophes last year, but signalled its confidence in the future with a 10% hike in the dividend. Gross written premiums were little changed at £1,433m in 2010 from £1,435m in 2009, while profit before tax fell to £211.4m from £320.6m the year before.Senior fell even after it upped sales to the military and defence, land vehicle and semi-conductor markets in 2010, pushing profits at the engineer to record levels. Adjusted profit before tax and one-offs grew by 36% to £65.3m in the 12 months to 31 December on revenue up 5% to £566.9m. Profit before tax increased 5% to £52.1m.Car rental group Avis Europe made more in 2010 than it had done for five years and further progress is on the cards for 2011. Underlying profit before tax increased 45% to €51m on group revenue up 9% to €1.52bn. Rental income was up 3% at €1.2bn.Military decoy flares and mine detection firm Chemring said it remains confident for 2011 as its order book surges. Trading during the first three months to the end of January 2011 rose 38% from the same period in 2010 on a constant currency basis. Its order book has increased 64% to a new record of £944m.Depressed construction markets in the US and much of western Europe slowed growth at ground engineering specialist Keller last year, but revenue still beat market expectations. Revenue in 2010 rose to £1,070m from £1,038m in 2009, beating forecasts of £1,037m.Decent revenue growth from Ultra Electronics sparked a 15% increase in underlying profit at the defence electronics supplier last year. Profit before tax and exceptional items rose to £102.7m in 2010 from £89.5m the year before on revenue up 9% to £710m. Organic growth at constant currencies was 6%.FTSE 100 - RisersEssar Energy (ESSR) 517.00p +3.48%Hammerson (HMSO) 466.10p +3.17%British Land Co (BLND) 583.50p +2.55%GKN (GKN) 209.90p +2.54%Prudential (PRU) 711.50p +2.37%Land Securities Group (LAND) 766.50p +2.34%Barclays (BARC) 319.85p +2.09%Vedanta Resources (VED) 2,409.00p +2.08%Capital Shopping Centres Group (CSCG) 395.30p +2.01%Schroders (SDR) 1,791.00p +1.99%FTSE 100 - FallersAssociated British Foods (ABF) 966.50p -5.89%HSBC Holdings (HSBA) 678.00p -4.65%Next (NXT) 1,976.00p -2.37%Morrison (Wm) Supermarkets (MRW) 276.80p -2.12%African Barrick Gold (ABG) 579.00p -1.95%Serco Group (SRP) 544.50p -1.63%Lloyds Banking Group (LLOY) 61.96p -1.42%Capita Group (CPI) 725.50p -1.36%Marks & Spencer Group (MKS) 346.40p -1.31%Imperial Tobacco Group (IMT) 1,974.00p -1.10%FTSE 250 - RisersTaylor Wimpey (TW.) 39.54p +4.58%Hays (HAS) 124.80p +4.00%Redrow (RDW) 135.30p +4.00%Brewin Dolphin Holdings (BRW) 179.60p +3.94%SThree (STHR) 418.00p +3.52%Kenmare Resources (KMR) 40.10p +3.51%Spirent Communications (SPT) 156.00p +3.45%Barratt Developments (BDEV) 107.40p +3.37%Premier Farnell (PFL) 303.20p +3.13%Moneysupermarket.com Group (MONY) 90.55p +3.07%FTSE 250 - FallersCPP Group (CPP) 283.00p -5.67%Centamin Egypt Ltd. (CEY) 118.50p -4.36%Ultra Electronics Holdings (ULE) 1,717.00p -4.02%Dunelm Group (DNLM) 398.00p -3.47%Sportingbet (SBT) 45.30p -3.41%Stobart Group Ltd. (STOB) 147.00p -3.23%Computacenter (CCC) 417.80p -3.22%Hansen Transmissions International NV (DI) (HSN) 46.54p -3.16%Enterprise Inns (ETI) 95.20p -2.96%Grainger (GRI) 101.10p -2.88%