London shares open weaker; commodities weigh, offsetting Reed Elsevier, Diageo |
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Thu, 15 Feb 2007 09:50
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LONDON (AFX) - Leading shares slipped lower in opening deals as weakness in the commodities sector offset stellar performances from Reed Elsevier following plans to sell its struggling education division and Diageo on the back of its raised guidance, dealers said.At 8.11 am, the FTSE 100 index was 3.8 points lower at 6,417.4, after breaching the 6,400 point level in afternoon trade yesterday to close up 39.4 points at 6,421.2.In the US overnight, the Dow Jones industrials set new highs when stocks extended their gains for a second day after Federal Reserve Chairman Ben Bernanke told a Senate panel the economy should grow modestly this year and that he expects inflation will continue to ease.The Dow Jones closed 87.10 points higher at 12,741.90, while the Nasdaq Composite added 28.50 points at 2,488.38 and the S&P 500 index took on 11.05 points at 1,455.30.Meanwhile, Asian markets were in a jubilant mood this morning, with Tokyo's Nikkei 225 index closing up 144.59 points at 17,897.23 and Hong Kong's Hang Seng ending 92.54 points higher at 3,142.94 ahead of the Chinese New Year celebrations this weekend.In London, Reed Elsevier led the risers, taking on 4.9 pct, or 29 pence at 633-1/2, after the Anglo-Dutch publisher announced plans to sell its under-performing education division and return the proceeds to shareholders as it reported a 4 pct rise in full-year revenue and said market conditions for 2007 were generally positive.Meanwhile, Diageo was close on Reed's heels, up 33-1/2 pence at 1,054-1/2 -- a climb of over 3.2 pct, as the world's largest alcoholic drinks producer reported organic operating profit growth of 8 pct in the first half and raised its full-year guidance to 8 pct organic operating profit growth.These performances were offset, however, by weakness in the oils sector following a 1.06 usd fall to 58.00 in late US trades overnight sparked by a report showing higher-than-expected US stockpiles of heating fuel.Cairn Energy lost 25 pence at 1,611, BP slipped 2-1/2 pence at 531-1/2 and Royal Dutch Shell dipped 6 pence at 1,689.newsdesk@afxnews.comhco/ambCOPYRIGHTCopyright AFX News Limited 2006. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
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