FTSE flat as G4S shares fall again
Pressure on security firm G4S has continued to mount following its admission that the Olympics debacle will cost it as much as £50 million this year.Damage to the company's reputation from the botched contract and uncertainty caused by the expected departure of chief executive Nick Buckles also unnerved investors as shares fell 9%, taking losses since Wednesday to £400 million.
In a session that saw the FTSE 100 Index close 3.7 points lower at 5662.4, G4S was comfortably the biggest faller, dropping 24.1p to 254.6p.
IG Index trader David Jones said: "For now there doesn't seem to be an appetite to view this as a bargain, with investors concerned about what it will mean for any future public sector contracts for the company."
There was also little cheer on the economic front after the IMF downgraded its UK growth forecast for 2012 to just 0.2% from the 0.8% it forecast three months ago, while next year's estimate was also cut to 1.4% from 2% previously.
The pound strengthened despite the IMF's assessment, meaning a further boost for UK holidaymakers heading to the continent. Sterling continued its strong run against the euro to reach 1.27 and was up at 1.56 versus the US dollar.
Back in the top flight, National Grid was 10.5p lower at 682.5p, after regulator Ofgem said it planned to allow £22 billion of investment in Britain's gas and high voltage electricity networks. The company had hoped that bill increases could average between £15 and £20 by 2021 but Ofgem has limited this under its "price control" regulation.
National Grid is concerned that Ofgem's proposals mean it will not be able to to encourage the investment needed in the UK's infrastructure and cover the implicit risk associated with such major projects.
Other high-profile fallers included Barclays on the day the industry's Libor-rigging scandal returned to the spotlight with MPs quizzing former chief operating officer Jerry del Missier. Shares were 4.45p lower at 157.7p, while Lloyds Banking Group was down 0.3p at 30p and Royal Bank of Scotland slipped 1.9p to 204.5p.
The pound strengthened despite the IMF's assessment, meaning a further boost for UK holidaymakers heading to the continent. Sterling continued its strong run against the euro to reach 1.27 and was up at 1.56 versus the US dollar.
Back in the top flight, National Grid was 10.5p lower at 682.5p, after regulator Ofgem said it planned to allow £22 billion of investment in Britain's gas and high voltage electricity networks. The company had hoped that bill increases could average between £15 and £20 by 2021 but Ofgem has limited this under its "price control" regulation.
National Grid is concerned that Ofgem's proposals mean it will not be able to to encourage the investment needed in the UK's infrastructure and cover the implicit risk associated with such major projects.
Other high-profile fallers included Barclays on the day the industry's Libor-rigging scandal returned to the spotlight with MPs quizzing former chief operating officer Jerry del Missier. Shares were 4.45p lower at 157.7p, while Lloyds Banking Group was down 0.3p at 30p and Royal Bank of Scotland slipped 1.9p to 204.5p.
© 2013 Press Association