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FTSE slightly lower in midday trade

MORNING REPORT: Headline shares remained close to the gain line throughout the morning, with a buoyant mining sector counteracting uncertainties in financial markets on both sides of the Atlantic, and with Wall Street seen opening lower.

At high noon, the FTSE100 was down 9.4 points at 5,461.3 with the FTE250 off 88.6 points at 9,045 and the FTSE Smallcaps 5.5 points lower at 2,789.6.

NEW YORK

US stock futures suggest that Wall Street will start on the back foot, as concerns remain about the health of the banking sector.

Dow industrial futures fell 42 points, S&P 500 futures dropped 5.6 points to 1,266.10 and Nasdaq 100 futures dropped 8.25 points to 1,883.25.

US data due today includes durable goods orders and Chicago Fed manufacturing survey, while the Atlanta Fed President, Dennis Lockhart, speaks on inflation.

LONDON MARKETS

Chilean copper miner Antofagasta this morning revealed that high commodity prices and increased production drove first-half profits up 15% to $1.66bn, despited an increase in operating costs. Revenues at the group rose 24% to $2.4bn.

The company said that the fundamentals for both the copper and molybdenum markets are firm.

Antofagasta shares added 16p at 586p, while other sector heavyweights also benefited, with Anglo American up 34p at 2,833p, Rio Tinto 9p better at 5,159p, ENRC up 16p at 1,017p and Xstrata 15p better at 3,038p.

Among the oil fraternity, explorer Tullow Oil, which has extensive operations across Africa, saw first-half profits surge 181% to £187m as revenues climbed 33% to £378m. The group said it is optimistic about the prospects in Ghana and Uganda.

Tullow shares were up 9.5p at 803p, with peer Cairn energy 89p stronger at 2,869p.

Oil services company Petrofac reported better-than-expected first-half financial results, as net profit jumped 57% to $121.2m from a year ago, helped by strong demand, adding it is well positioned to deliver financial results at the top of end of expectations. The shares gained 25p to 617.5p.

Amongst financial issues, insurer Admiral Group succumbed to profit-taking after yesterday's results, sliding 45.5p to 914p.

Other insurers showed weakness, with Aviva off 7.75p at 493.25p and Prudential down 9.5p at 530p.

Taylor Nelson Sofres today reported underlying revenue growth of 5.1% for the first half.
TNS, which has been fighting off a £1.1bn hostile takeover bid from advertising group WPP, said its order book gave it confidence in its full-year target to increase underlying sales by about 6%. TNS shares were 4.75p lower at 264p, while WWP dropped 4.5p to 502p.

Taylor Wimpey, one of the biggest UK housebuilders, plans to scrap its interim dividend payment after first-half profits plunged 96% to just £4.3m.

The builder, which expanded aggressively into the US as America's housing market slowed, also announced a write-down on its landbanks in the UK, North America and Spain totalling £690m. The company said it remained in full compliance of its debt covenants.

Taylor Wimpey shares dipped 2.75p to 49.25p, dragging down the rest of the sector with it.

Barratt Developments fell 3.75p to 131.5p, Bellway was 26p lower at 576.5p and Persimmon fell 11p at 343.5p.

Anglo-Danish firm G4S, the world's biggest security and guarding company, was upbeat about its prospects, despite the global economic slowdown. The group reported a 13.5% rise in pre-tax profits to £109m as revenues rose 26% to £2.7bn. The shares added 9.75p at 221.25p.

Newspaper group Johnston Press, down 3.25p at 47.75p, announced it has cancelled its dividend after unveiling a loss of £53.7m in the first half as revenues fell 6.3% to £293.1m as advertising revenues tumbled. The group also recorded an impairment charge of £109m.

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