FTSE dips as miners' recovery fails to offset property subsidence

A weak start to business in New York added to the pressure, with the FTSE 100 index closing down 25.9 points at 6,194.2. Miners recouped some of the losses they suffered in Friday, despite further drops in the price of copper. Xstrata lifted 2.2 per cent, or 51p, to 2,314p and Anglo American gained 1.6 per cent, or 38p to 2,368p. The heaviest falls of the day were among property companies after HSBC downgraded a number of stocks in the sector. Land Securities was off 73p to 2,210p while British Land fell 48p to 1,604p, Slough Estates dropped 13.5p to 770p and Hammerson sank 38p to 1,497p. HSBC said excitement over the introduction of real estate investment trusts had pushed shares in companies to unsustainable levels. Fears that a Democrat-led US Congress would lead to a negotiation of lower prices for prescription drugs by Medicare inspired traders to push pharmaceutical stocks lower. GlaxoSmithKline slipped 31p to 1,360p, AstraZeneca lost 54p to 2,804p and Shire slipped 14p to 1,090p. BP and Royal Dutch Shell were off 4.5p and 19p at 552.5p and 1,713p respectively. But Cairn Energy gained 3.3 per cent, or 55p, to 1,725p ahead of the listing of its Indian arm today. Fashion chain Next gained 1 per cent to add to its impressive 4 per cent rise on Friday following last week's update. The latest move came after Credit Suisse raised its target price to 2,300p from 2,000p. Next shares were up 21p to 1,961p. The rest of the retail sector fared less well after Marks & Spencer dipped 9p to 725p ahead of its trading update today, which investors expect will show strong sales over the Christmas period. British Airways spent much of the day on the Footsie leaderboard after the airline reached an agreement with its unions on plans to tackle a 2.1 billion pensions deficit. Shares rose 2 per cent but closed down 4.25p to 544.5p after profit-taking. There was a welcome boost for Michael Grade in his first day as executive chairman of ITV. The broadcaster's shares were up 1.5p at 107p. Outside the top flight, Wolfson Microelectronics surged nearly 5 per cent, or 13.75p, to 296.25p as Apple Computer prepared to launch its iPod-enabled phone. Wolfson made the audio chips for the iPod and is expected to provide similar technology for the iPhone. Photographic retailer Jessops slumped 15 per cent , or 22.5p, to 126.5p after it issued a profits warning and said sales were down 6.9 per cent in the six weeks to 5 January. Clinton Cards moved the other way after a like-for-like sales rise of 3 per cent banished concerns it had been caught in the retail slowdown. Its shares were up 1.75p at 61.5p. Northern Foods surged 2 per cent, or 2.5p, to 120.5p as analysts speculated that the supermarket food supplier had benefited from the resurgence of Marks & Spencer, a key customer Northern. Cake and bread maker Finsbury Foods rose 6.7 per cent, or 46p, to 92p as it said that it expected full-year profits to come in ahead of forecasts. Last November Finsbury acquired the Scottish firms Memory Lane Cakes, California Cakes and Campbells Cakes, which are now reporting strong sales.