Markets: Aggreko surge fails to drive FTSE up

TEMPORARY power supplier Aggreko finished at the top of the FTSE 100 risers' board yesterday after the Glasgow-based firm raised its full-year profit forecast.

Addressing shareholders at the firm's AGM, chief executive Rupert Soames said a strong first quarter and its recent contract win in tsunami-ravaged Japan had helped it to raise its earnings growth predictions from 15 per cent to 20 per cent.

After peaking at 6,089.4 in afternoon trading, the Footsie fell back to close at 6,068.16, down 1.2 points on the day, held back by falls in the heavily-weighted mining sector.

Companies trading ex-dividend knocked almost six points off the index, with ARM Holdings, Centrica, Smith & Nephew, and Tesco all losing their payout attractions.

UK gross domestic product (GDP) figures had been no worse than forecasts, buoying the City for a time and pushing the FTSE 250 Index up 26 points to 11,895, its highest close since July 2007.

Ben Critchley, sales trader at IG Index, described the Footsie's movements as "indecisive". He added: "Taking the morning's GDP figures well after a hesitant start, the UK's leading index wound down for the afternoon."

Primark-owner Associated British Foods was the biggest faller in the top flight after it warned profits would be impacted by sky-high commodity prices in its grocery and sugar businesses. The caution overshadowed interim results showing a 7 per cent rise in underlying pre-tax profits in the six months to 5 March. Shares fell nearly 6 per cent or 61p to 984p.

The other major casualty of the session was Barclays after the banking giant's first-quarter profit of 1.66 billion came in slightly below the market consensus, reflecting pressure on investment banking revenues.

The 9 per cent drop in quarterly profits came after revenues at Barclays Capital, seen as an engine for growth at the firm, dropped 15 per cent to 3.3bn as the group dealt with "a challenging external environment". Shares fell nearly 5 per cent or 14.3p to 287.5p.

BP also missed forecasts after a slight drop in first-quarter profits, but a stronger-than-expected performance in refining helped the embattled oil giant as its shares moved 1.8p higher at 466p. Shell, which is due to post figures this morning, added 24p to end the day at 2,317p.

Strong first-quarter growth and high inflation in China raised the likelihood of further interest rate hikes in the emerging economy. A tightening of monetary policy would hit the country's demand for raw materials, and consequently saw shares in mining stocks fall.

Antofagasta led declines in the sector, dropping 37p to 1,359p, with silver miner Fresnillo - which also turned ex-dividend - losing 43p at 1,606p and BHP Billiton off 55p to 2,505p.

Among the Scottish stocks, Edinburgh-based microchip maker Wolfson jumped 6.7 per cent or 14.5p to close at 231.5p.The stock had fallen in early trading but rose later in the day as investors digested a positive first-quarter trading update.

Scottish & Southern Energy edged ahead by 11p to end the session at 1,350p. The rise came as the Perth-based utilities giant appointed Jeremy Beeton and Katie Bickerstaffe as non-executive directors.