News

London has had a dull morning with ex-dividends and profit taking sending the FTSE 100 lower.

Those trading XD included Alliance & Leicester, Slough Estates, Amvescap, Corus, Legal & General and BHP Billiton.

Utility supplier Drax Group is the weakests performer as Merrill Lynch downgraded the stock to "neutral" from "buy" citing valuation grounds. Miners such as Vedanta Resources and Kazakhmys are topping the risers.

Tobacco giant Gallaher barely moved despite reporting a better-than-expected 4% rise in half-year profits to £275m, adding its outlook for the rest of the year was in line with its expectations despite some tough European markets.

In a trading statement, DSG reported like-for-like sales rose 5% in the 16 weeks to 19 August with like-for-like gross margin in line with the same period last year. Flat screen TV sales boosted the figures.

Elsewhere Goldman Sachs lifted its target on GlaxoSmithKline to 1,610p per share from 1,570p previously, arguing that it trades at a discount to European peers.

Contractor Carillion agreed to sell its stake in 8 Public Private Partnership projects to two secondary market funds. Half-year underlying profits rose 23% to £24.7m, while orders have climbed to £14.5bn, it added.

Oil and gas explorer Tullow Oil increased first half profit 51% and said it expects to hike production to 75,000 boepd by the end of the year.

Pub owner Punch Taverns cheered investors as it said trading across the group has continued in line with company expectations. Sales at its 7,846 leased pubs rose 1% on a like-for-like basis in the year to August 19.

Housebuilder Wilson Bowden reported a drop in first half pre-tax profit amid a sluggish housing market, but says the outlook for the rest of the year remains positive.

Retailer Woolworths rose on a newspaper report that it could be broken up under a takeover plan devised by Icelandic investor Baugur.

Surgical equipment group Gyrus and Medtronic Xomed have agreed to settle a long-running patent infringement dispute brought against Gyrus ENT by Medtronic. There are no damages or payments involved and each party will be responsible for its own costs.

Specialist holiday business Holidaybreak says trading prospects remain satisfactory, adding that it expects to deliver double-digit margins again and be strongly cash generative with year-end net debt substantially reduced.

Shares in Pennant International catapulted forward as interim pre-tax profits surged with the information training provider adding that current trading is strong.

Skyepharma perked up as it found a European partner for its asthma treatment Flutiform.