Greece deal fails to enliven Footsie

A LACKLUSTRE end to the week left the FTSE 100 teetering on the cusp of 5,700 last night despite European leaders agreeing an aid package for Greece and US markets opening on the front foot.

In London, the top flight finished 24.63 points lower at just over 5,703, while Wall Street made early progress after an overnight sell-off. US stocks were helped by consumer confidence figures although the latest revision to US output in the final three months of 2009 fell short of hopes.

With corporate news thin on the ground, it was a largely quiet day for the Footsie, which has temporarily expanded to 101 firms in the wake of the Cable & Wireless de-merger.

Geoff Wilkinson, head of investment research at Mint, said: "There's a degree of exhaustion after the gains, there's no reason to be outright short on the market but it may be a good idea to book profits after recent strength."

The pound languished below $1.49 against the dollar and was back down to 1.11 against the euro as the single currency strengthened on news of the Greece debt summit deal.

But Phil McHugh, senior executive dealer at Currencies Direct, warned: "Although the bailout was welcomed by the financial markets, the news of the International Monetary Fund's involvement was not good for the euro.

"What we are seeing is a relief rally, with the euro being bought on the fact that a proposal has finally been agreed, rather than on the specific details it contains."

Back in London, Cable & Wireless completed its long-awaited de-merger, with two separate firms listed in the top flight – meaning the FTSE 100 contains an extra company until Tuesday.

C&W Worldwide (CWW), which provides services to some of the world's largest telecoms users, gained 3p to 92.25p. But C&W Communications (CWC), the operator of services in 38 local markets, instead fell 61 per cent or 91.25p to 56.75p. Edinburgh-based oil and gas explorer Cairn Energy was a strong performer as the stock continued to gain from its announcement of much higher output from its Indian assets earlier in the week. The shares rose 7.2p to 433.9p yesterday as Citigroup lifted its target price.

International Power was on the wrong end of broker comments, however, as JP Morgan cut its rating on the stock and sent shares down 12.8p to 316.9p. Scottish & Southern Energy – also out of favour with JP Morgan – lost 24p to end the week at 1,102p.

Hedge fund giant Man Group was one of the biggest fallers as investors gave the thumbs-down to reports that the company is eyeing expansion in the US. Shares fell 9p to 242.4p.

HMV was the star performer in the FTSE 250 after it released further news on its strategy update for the next three years.

The owner of the Waterstone's book shop chain soared 10 per cent, or 8.2p, to 87p after it revealed plans to boost its live music and festival division, while implementing a turnaround plan at its under-pressure book chain.

Meanwhile, consumer goods firm SSL International, whose products include Durex condoms and the Scholl footcare range, rose 9.5p to close at 808p after it said strong sales of its key brands and acquisitions had underpinned growth.

Elsewhere, collectables firm Stanley Gibbons rose 7 per cent, up 9p to 130.5p, after it posted an 11 per cent rise in annual profits.