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FTSE closes at 6590.6

Updated on 02 July 2007

Source ITN

Retailers bore the brunt of the wet weather and weakening consumer confidence with shares down in Dixons owner DSG International, Next and Morrisons.

DSG fell 3.2p at 155.5p, Next was 39p lower at 1970p, and supermarket chain Morrisons was off 7p at 295.5p.

The same factors appeared to put pressure on the pub chains, with Enterprise Inns dropping 15.5p to 673.5p. Mitchells & Butlers was down 16.5p at 863p.

Meanwhile, security fears and high oil prices turned investors off the aerospace sector, where British Airways was down 5.75p to 412.75p, as concern grew over the impact of tighter security measures following events in Glasgow. Fellow carrier easyJet also fell 10p to 515p.

Sentiment towards BA was also affected by oil prices of above $70 (US) a barrel, although this was a positive for BP, which climbed 1p to 604p, while Royal Dutch Shell gained 26p to 2109p.

Among commodity stocks, platinum specialist Lonmin added 159p to 4179p amid talk from traders of a potential 4500p a share bid from rival Xstrata, as global demand fuelled consolidation in the sector. Xstrata lifted 71p to 3058p, while Rio Tinto advanced 115p to 3942p.

Other firms on the front foot included housebuilders after a bullish trading update from Barratt Developments at the end of last week. Barratt gained 7p to 1000p, while top flight rival Persimmon was ahead 15p at 1173p.

In the second tier, biscuits maker Northern Foods crumbled nearly 5 per cent after Citigroup cut its full-year profits estimate. Shares responded with a decline of 5.5p to 113.5p.

The biggest Footsie risers were Lonmin, up 159p at 4179p, Rio Tinto ahead 115p at 3942p, BHP Billiton up 35p at 1425p and Xstrata ahead 71p at 3058p.

The biggest fallers were Icap, down 14.5p at 479.5p, Imperial Tobacco off 57p at 2250p, Morrisons down 7p at 295.5p and Enterprise Inns off 15.5p at 673.5p.

© Independent Television News Limited 2007. All rights reserved.

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