Market report: Friday close
THE US economy may be growing at its fastest rate since 1984 but that has failed to impress investors on either side of the Atlantic.
The London market drifted lower today with the FTSE 100 falling 13.3 points to 4287.60 in thin trading. This followed a lacklustre performance overnight on Wall Street, where traders were clearly rattled by worse-than-expected third-quarter numbers from the world's biggest oil company, ExxonMobil.
They say the US economy continues to be fuelled by high-spending consumers and that cannot be sustained. In the meantime, corporate profitability needs to improve in order to generate wealth.
Among blue-chips, BOC Group continued to lose ground in the wake of this week's decision by an Illinois court to award compensation to a welder who claims industrial gases gave him Parkinson's disease. It is feared the result could open the floodgates to a further 6000 cases. The shares fell 23p to 803 1/2p.
Further reflection upon yesterday's drop in profits left ICI 2 3/4p cheaper at 193 3/4p while Unilever firmed 5p to 502 1/2p after a line of 30 million shares went through at 497 3/4p.
Short-haul carrier easyJet was the latest company to get hit by a daft trade in its shares. The price fell 13p to 267p after a line of just 300 shares went through at that level. It later recovered to trade flat at 280 1/2p.
It was the first day of dealings on AIM for two companies. Ocean Power Technologies was placed by broker Evolution Beeson Gregory at 125p and touched 133 1/2p before settling below the start price at 123p.
The group has developed a power generation system that is described as low cost, non-visible and non-polluting.
More successful was Crown Corporation after a placing by broker Insinger Townsley. The shares opened at 350p and raced up to 370p, valuing the business at about £350m and making it one of the 10 biggest companies quoted on AIM.
Crown is described as an active management consultant and has raised £150m already from various European institutional investors.
One company that plans to drop down from a full listing to AIM on 1 December is fashion retailer Monsoon, flat at 161 1/2p.
The move follows a controversial offer of a put option by Stoneycroft, the vehicle of founder chairman Peter Simon's children, that took their holding above 75%.
As a result the number of free shares held by the public fell below the minimum 25% required to retain a full listing. Monsoon has also appointed Numis Securities as its broker and financial adviser.
Bob Morton's in-car entertainment group Armour rose 1 1/2p to 56p after buying four specialist hi-fi manufacturers - Veda, QED, Goldring and IMI - for £12.5m.
Of the £11m initial outlay, Armour will pay £10.45m in cash with the balance from a placing of a million shares at 52p.
Booby prize of the day has gone to Heywood Williams - the biggest faller in the market with a loss of 58 1/2p to 74p.
The window-maker has plunged into the red after taking a £25m hit. The chairman and chief executive have left, and 300 jobs are to go.
