London open: Footsie slips on big results day

13th May 2009 08:40

It's a big day for company announcements, but investors seem unimpressed so far with Footsie off a few points despite good numbers from J Sainsbury, Compass and L&G.Strong demand for its 'basics' range has helped supermarket giant J Sainsbury deliver better than expected full year profit. Underlying profit for the year to 21 March leapt 11.3% to £543m, ahead of the £527m predicted.Insurer Legal & General has reported a 3% rise in worldwide new business during the first quarter of 2009 and a "modest improvement in its estimated IGD surplus to £1.6bn.Catering giant Compass Group reported a 41% rise in half-year profit and expects trends in the first half to continue into the second.Miners, though, are proving a drag as talk persists that Rio Tinto is set to scrap its deal with Chinalco and launch a huge rights issue to raise additional cash. Other miners are weak in sympathy.Pub groups are also taking a beating on the parliamentary report calling for a referral of the tied system to the Competiton Commission. Punch has been quick to reject the demand saying it is not necessary. Enterprise Inns is also down heavily.Property giant Land Securities saw its net asset value slashed by two-thirds in 2008 in what it described as 'unprecedented market conditions.' Basic net asset value (NAV) per share slumped to 639p at the end of March 2009 from 1,862p a year earlier.Oil and gas group BG has strengthened its ties with China National Offshore Oil Corporation and agreed a joint liquefied natural gas (LNG) project development Agreement focused on BG Group's Queensland Curtis LNG Project in Australia. Housebuilder Barratt's order book has risen by 70% since the start of 2009, but the group is still cautious over the market with demand held back by lack of mortgage availability.Property company Hammerson has sold the last of its property in Germany, raising gross proceeds of €70m.Bumper sales of hot cross buns helped bakery chain Greggs put in a solid performance over Easter. The group, with over 1,400 retail outlets in the UK, increased total group sales in the 19 weeks to 9 May 2009 by 5.2%, including like-for-like sales growth of 2%.