FTSE closes at 5534.5

Updated 17.29 Tue Aug 12 2008
Keywords: money, London, FTSE, stock market

The FTSE 100 index has closed down 7.3 points at 5534.5 after fallout from the conflict between Russia and Georgia hit the energy market.

BP announced that it had taken the precaution of shutting a pipeline in Georgia following fierce fighting in the region.

Winners: ITV up 3p at 50.6p, British Land up 31.5p to 790.5p, InterContinental Hotels Group up 22.5p to 773p and Drax Group which ended the session up 17.5p to 699p

The London market had been holding up despite the latest inflation figures, which showed the biggest monthly rise since records began, at 4.4 per cent.

ITV was the standout stock due to speculation of a takeover approach from Dutch TV firm Endemol. It sent the broadcaster's shares up 6 per cent, or up 3p at 50.6p.

Oil prices remaining below $114 a barrel also saw travel and transport firms gain places on the FTSE risers board. Tour operator TUI Travel rose 4.25p to 239.25 while bus and rail firm FirstGroup gained 2p to 566.5p.

Holiday Inn firm InterContinental Hotels also made good gains, up 3 per cent after half-year figures showed a 21 per cent hike in earnings, up 22.5p at 773p.

Retailers were under pressure as disappointing industry sales figures for July highlighted the severity of the sector's downturn.

Next, Sainsbury's and Marks & Spencer were among those who suffered after the British Retail Consortium said July sales fell 0.9 per cent year-on-year.

Next fell 52p to 1080p, while Sainsbury's dropped 6.25p to 367.25 and M&S shed nearly 3 per cent, or 8p to 296p, amid fears the inflation figures have increased the chances of an interest rate rise.

Supermarket Tesco was more resilient, adding 2.7p to 396.8p, after announcing its Indian debut with a wholesale cash-and-carry venture and deal with India's Tata Group conglomerate.

Winners: ITV up 3p at 50.6p, British Land up 31.5p to 790.5p, InterContinental Hotels Group up 22.5p to 773p and Drax Group which ended the session up 17.5p to 699p.

Losers: London Stock Exchange down 68p to 900p, Standard Chartered down 109p to 1490p, Eurasian Natural Resources down 71.5p to 988.5p and Kazakhmys which ended the day 68p down at 1166p.

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