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FTSE little changed in early deals

MORNING REPORT: Headline shares were little changed in early deals today, after a Wall Street session lacking direction and with Asian markets mixed this morning. The mining sector was buoyant after pleasing interim results from Antofagasta.

At 9:00am, the FTSE100 was down 1.8 points at 5,468.9 with the FTE250 off 51.2 points at 9,082.4 and the FTSE Smallcaps 1.9 points lower at 2,793.2.

US & ASIA

In the US last night, the DJIA closed up 26.78 points at 11,413.03 as rises in energy shares offset weakness among banking issues, with the S&P500 ahead 4.67 points at 1,271.51 and the Nasdaq Composite off 3.62 points at 2,361.97.

In Asia today, the Hang Seng ended up 408.06 points at 21,464.72, while the Nikkei closed down 25.75 points at 12,752.96.

Crude oil for October delivery rose 44 cents to $116.71 a barrel in Asian trade.

LONDON MARKETS

Chilean copper miner Antofagasta 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 4p at 574p, while other sector heavyweights also benefited, with Anglo American up 31p at 2,830p, Rio Tinto 19p better at 5,169p, BHP Billiton up 11p at 1,687p and Xstrata 11p better at 3,034p.

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 10p at 803.5p, with peer Cairn energy 41p stronger at 2,821p.

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 4p lower at 264.75p, while WWP dropped 5.5p to 501p.

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 5.5p to 46.5p, dragging down the rest of the sector with it.

Barratt Developments fell 4.5p to 130.75p, Bellway was 19p lower at 583.5p and Persimmon fell 8p at 346.5p.

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 1.25p at 212.75p.

Newspaper group Johnston Press, down 2p at 49p, 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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