FTSE closes at 5411.9

The FTSE 100 Index has closed 8.8 points down at 5411.9.

A large number of FTSE companies posted results during the session, with the main focus of investors on BT and Halifax Bank of Scotland.

BT shares closed 12 per cent lower, down 23.7p at 173.9p, after the company warned margins at its corporate IT arm were likely to ease this year.

It was a testing session for the telecoms sector after Carphone Warehouse downgraded its forecast for broadband growth this year, with shares 3.7p lower at 189.1p.

Unilever was also in negative territory, shedding 8 per cent or 122p to 1388p, after analysts noted that price rises rather than higher volumes were behind the company's sales growth in the second quarter.

But there was better news from the banks, with the absence of any further credit crunch-related surprises in HBOS's half-year results causing the stock to rally 19.25p to 290.5p.

A dividend rise also reassured investors as the stock surged 7 per cent to the top of the FTSE risers' board.

Royal Dutch Shell and Centrica experienced mixed fortunes after an initially positive reaction to results.

The oil giant posted better than expected profits for the second quarter but was rewarded with a fall of 23p to 1782p after losing gains seen on the back of higher overnight energy prices.

British Gas owner Centrica was higher for a spell after operating profits came in ahead of expectations.

The stock later gave back the gains to close 3.25p cheaper at 314.75p as some analysts suggested that the bad publicity surrounding its record price hikes could lead more customers to switch away from the group.

Winners: HBOS up 19.25p at 290.5p, Eurasian Natural Resources ahead 67.5p at 1055p, Reed Elsevier up 32.5p at 576.5p and Tullow Oil ahead 44p at 787.5p.

Losers: BT Group down 23.7p at 173.9p, Unilever off 122p at 1388p and SABMiller down 54p at 1049p.

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