London midday: FTSE 100 hits 2011 low

20th Jan 2011 12:04

The top share index has fallen below 5,900 points for the first time this year as the impact of snow casts a shadow over a raft of trading updates and strong growth in China stokes speculation of fiscal tightening.China's economy grew by 10.3% in 2010, ahead of expectations after a strong final quarter. Analysts had been predicting a 10.2% increase, but strong industrial production and retail sales in the final quarter brought about a bigger-than-expected 9.8% annualised rate of growth in the final quarter.While the numbers demonstrate China's continued success in a year that saw it overtake Japan to become the world's second biggest economy, it will also fuel speculation of monetary tightening as the government seeks to prevent inflation spiralling out of control.In company news, Associated British Foods (ABF) falls back after saying that it grew revenue by 10% in the first 16 weeks of the financial year, in line with expectations, but that rising commodity prices are hitting margins and the weather-hit sugar crop will trim annual profits. Revenue at constant exchange rates was up 7%. Higher prices boosted profits at the sugar business where revenue rose 7%, but the recent increase in temperatures following the pre-Christmas freeze is damaging the 25% of this year's sugar beet crop still to be processed. Higher commodity costs are forcing the firm to raise prices at all businesses.Business at engineer Invensys, another faller today, was "on track" during the third quarter, though orders fell at the rail division and a "softening" in demand for controls trimmed profits there. Operating profit before exceptional items was the same as last year, keeping the firm on course to deliver an "improved" performance for the full year, it said.Insurance group RSA Insurance is also lower. It had a tough winter, with losses relating to the weather in November and December £142m more than normal. For the year as a whole the weather impact was around £255m above normal levels. Despite the effects of hurricanes, earthquakes and the big freeze, the chief executive officer Andy Haste said the group had still posted a "strong result" for 2010, with 11% growth in net written premiums, a combined operating ratio (COR) of between 96.5% and 97% and an operating profit of £600m-£640m.The extreme weather over Christmas kept drinkers at home, taking an estimated £2m off Enterprise Inns' first quarter operating profit, Britain's biggest pub owner said. Enterprise said the disappointing trading came after a solid start to the year. Net income was down by 1% during the quarter, with net income per pub down by about 2%. EasyJet was another victim of the weather. The budget airline said bad weather and strike action towards the end of last year cost it a total of £31m.Power systems developer Rolls-Royce has bagged a $250m long term maintenance support contract from Cathay Pacific airline. Rolls-Royce will provide its TotalCare long-term services support programme for Trent 700 engines that power eight new Airbus A330 aircraft. An enhanced engine refurbishment programme for RB211-524 engines that power existing Boeing 747-400 aircraft will also be delivered up to 2013.Shares in Laura Ashley jumped after the extreme winter weather and consumer nervousness failed to prevent the ladies fashion and home furnishings group having a good Christmas. The company said it had performed better than anticipated since its trading update on 16 December and now expects full year profits to be "significantly higher than earlier expectations."FTSE 100 - RisersScottish & Southern Energy (SSE) 1,221.00p +1.24%Lloyds Banking Group (LLOY) 67.00p +1.19%National Grid (NG.) 536.50p +1.04%Barclays (BARC) 298.75p +0.88%Aviva (AV.) 431.50p +0.75%Centrica (CNA) 331.90p +0.58%Capital Shopping Centres Group (CSCG) 375.00p +0.51%Standard Chartered (STAN) 1,711.00p +0.41%Next (NXT) 2,141.00p +0.33%Royal Bank of Scotland Group (RBS) 42.46p +0.28%FTSE 100 - FallersInvensys (ISYS) 332.70p -6.91%Fresnillo (FRES) 1,360.00p -4.90%Kazakhmys (KAZ) 1,550.00p -4.44%Burberry Group (BRBY) 1,043.00p -4.31%British Airways (BAY) 275.60p -4.14%Weir Group (WEIR) 1,577.00p -4.13%Lonmin (LMI) 1,761.00p -4.03%Man Group (EMG) 289.40p -3.95%IMI (IMI) 890.00p -3.94%GKN (GKN) 211.70p -3.90%FTSE 250 - RisersKenmare Resources (KMR) 33.24p +3.88%Ocado Group (OCDO) 213.00p +2.65%JD Sports Fashion (JD.) 899.50p +2.22%Spirent Communications (SPT) 142.00p +1.87%Exillon Energy (EXI) 400.00p +1.52%BH Macro Ltd. EUR Shares (BHME) € 16.84 +1.45%Grainger (GRI) 105.90p +1.34%AG Barr (BAG) 1,075.00p +1.22%BH Macro Ltd. USD Shares (BHMU) 16.72 +1.21%Impax Environmental Markets (IEM) 126.40p +1.12%FTSE 250 - FallerseasyJet (EZJ) 393.10p -13.76%Centamin Egypt Ltd. (CEY) 149.20p -5.27%Domino's Pizza UK & IRL (DOM) 517.00p -5.22%Elementis (ELM) 127.40p -5.21%Fenner (FENR) 355.00p -5.16%Rotork (ROR) 1,587.00p -4.51%Charter International (CHTR) 798.00p -4.43%Ashmore Group (ASHM) 341.80p -4.23%Afren (AFR) 149.90p -3.85%Croda International (CRDA) 1,518.00p -3.80%