Heavy falls put index in reverse

Apr 18 2008 by Graeme King, The Journal

THE FTSE 100 yesterday fell away 65.8 points to close at 5980.4 after heavy falls derailed the upward momentum triggered by the flurry of interest in international brewer SABMiller.

SABMiller, owner of a raft of brands such as US beer Miller in addition to a heavy concentration in Eastern Europe reported strong figures on Wednesday. Yesterday’s increase in the share price – 59p to 1178p – coupled with gains over recent weeks are a reflection on the firm’s brands’ strong growth.

The heaviest weight on the market, however, was newcomer Thomson-Reuters which plunged 14.55% on its listing debut. Shares in the company, which closed 266p down at 1562p, were widely believed to have dipped due to investors unwinding positions built up prior to the recent takeover of Reuters. Thomson-Reuters are now estimated to control over two thirds of world financial data flows. Joining Thomson on the losers’ list were mining firms ENRC – down 68p at 1271, Rio Tinto – down 227p at 6147p, and Lonmin – 117p off at 3157p, as the surge into commodities calmed.

Michelle Stansby Associate Director

Barclays Wealth