🥇 First rule of investing? Know when to save! Up to 55% off InvestingPro before BLACK FRIDAYCLAIM SALE

Mixed earnings dent FTSE's progress

Published 04/21/2011, 11:52 AM
Updated 04/21/2011, 11:56 AM
UK100
-
BARC
-
BP
-
UBSN
-
VOD
-
SOWGn
-
TT
-
AUTN
-
FTNMX404010
-

(UK equity markets will be closed on Friday and Monday due to the Easter bank holiday weekend. Reuters coverage will resume on Tuesday.)

* FTSE down 0.1 percent

* Autonomy gains after Q1 beat

* Vodafone knocked by Dutch peer's results

By David Brett

LONDON, April 21 (Reuters) - Mixed corporate earnings persuaded investors to consolidate recent gains as Britain's top share index closed marginally lower on Thursday, ahead of the long bank holiday weekend.

The FTSE 100 index closed down 3.96 points or 0.1 percent at 6,018.30, having jumped 2.1 percent on Wednesday to close back above the 6,000 level for the first time since the start of March.

Analysts said tumultuous trading conditions and light volumes would likely keep the FTSE from attacking fresh 52-week highs around 6,100 in the short term.

"The exceptional volatility that has been evident over the last few weeks is likely to have consigned many traders to the sidelines as they wait for a clear trend to emerge, although such a move does not appear to be imminent," Bill McNamara, a technical analyst at Charles Stanley, said.

Earnings news in the UK, United States and Europe dominated investors' thoughts.

Autonomy secured top spot among London's blue chip companies, up 7.4 percent, after the enterprise search software maker beat first-quarter earnings expectations.

Traders said the results prompted some short covering.

"With the selloff from the October highs it does, however, create some careful positional opportunities on the long side," Atif Latif, director of trading at Guardian Stockbrokers, said.

EARNINGS MIXED

Weakness in mobile telecoms heavyweight Vodafone was the biggest drag on blue chips, down 4.3 percent and taking more than 15 points off the FTSE 100, with traders citing a read-across from weakness in Dutch peer KPN's results and forecasts.

Integrated oils gave up some recent gains. BP fell 1.2 percent as the British firm and its partners involved in the Gulf of Mexico oil spill unleashed a $100 billion-plus barrage of legal claims a year after the rig blast killed 11 workers and created an environmental disaster.

On the upside, banks provided the main strength for the FTSE 100 index, led by Barclays, up 1.5 percent after U.S. peer Morgan Stanley posted first-quarter results.

Travel firm TUI Travel was a top FTSE 100 riser, up 3 percent, with traders citing the impact of an upgrade by Deutsche Bank to "buy" from "hold".

In the retail sector, clothing chain Next gained 2.1 percent as UBS raised its target price for the stock and traders said Morgan Stanley had name it as its top pick in a more upbeat review of general retailers.

British retail sales, meanwhile, rose unexpectedly in March.

A disappointing reading of the Philadelphia Fed Business Activity Index put a dampener on sentiment for the afternoon. (Editing by David Holmes)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.