London open: Recession fears spook investors

7th Nov 2011 09:20

You will search in vain for positive features among FTSE 100 index constituents, as every stock that belongs to the top-share index is lower, after consultancy BDO LLP's UK output index, which tries to gauge output over the next three months, declined in October to the lowest level in more than two years.WEIR WARNS OF DIFFICULT TIMES AHEADScottish engineering firm Weir, the company which saw a five-fold increase in its share price between January 2009 and August of this year, leads the market lower.As was the case with its August trading update, the numbers looks all right but the company has been talking down its own prospects. Revenues in the third quarter grew more strongly than the first half of the year and also on a like for like basis against the same period of 2010. However, referring to its oil and gas business, Weir warns "downstream market conditions remain challenging". As for the Power and Industrial arm, "overall market conditions remain mixed with continuing delays in nuclear projects and largely weak general industrial markets".The market is not impressed with the third quarter trading update from Essar Energy, either. The India-focused integrated energy company said total energy generated during the period rose to 1,553mWh (megawatt hours), 4% higher compared to 1,498mWh for the same period a year ago. The company said higher gas prices, resulting in a higher generation cost, have sapped demand at its gas based plants in recent months.PREMIER FOODS NOT DONE YETStruggling food manufacturer Premier Foods has been given a bit of breathing space by its bankers, who have agreed to defer the company's end-of-year loan covenant tests by three months.The shares rose more pleasingly than a bit of hot pastry on the news. Another stock on the rise is Carphone Warehouse, after it confirmed it is simplifying its business relationship with US consumer electronics giant Best Buy, by selling it some assets and forming a new joint venture.Carphone Warehouse is selling its share of Best Buy Mobile's US and Canadian business to the US firm for £838m. The company intends to return £813m of cash to shareholders through a share issue which will give shareholders the option of income or capital. It also announced plans to shut down its 11 loss-making edge-of-town consumer electronics barns.The closure of the 11 UK outlets does not seem to have done much for the shares of Comet owner, Kesa Electricals, which is one of the biggest fallers among FTSE 250 constituents.Rentokil, the pest control and cleaning services company, has seen profits drop in the third quarter as its City Link delivery business continues to drag the group down. Adjusted profits before tax were down 11% on the equivalent period of 2010 although revenues did inch 0.6% higher.FTSE 100 - RisersNoneFTSE 100 - FallersWeir Group (WEIR) 1,797.00p -6.94%Lloyds Banking Group (LLOY) 27.32p -4.38%Essar Energy (ESSR) 300.40p -3.75%Schroders (Non-Voting) (SDRC) 1,173.00p -3.22%Royal Bank of Scotland Group (RBS) 22.35p -3.20%Barclays (BARC) 177.75p -3.16%Xstrata (XTA) 970.40p -3.15%Kazakhmys (KAZ) 922.50p -3.00%IMI (IMI) 798.50p -2.92%Rio Tinto (RIO) 3,387.00p -2.81%FTSE 250 - RisersPremier Foods (PFD) 3.75p +11.41%Laird (LRD) 155.80p +2.70%Rank Group (RNK) 139.00p +2.66%COLT Group SA (COLT) 102.40p +1.89%FTSE 250 - FallersSThree (STHR) 237.50p -5.87%Sports Direct International (SPD) 228.70p -4.47%Ferrexpo (FXPO) 303.50p -4.23%Thomas Cook Group (TCG) 45.69p -4.15%Caledonia Investments (CLDN) 1,486.00p -4.13%Halfords Group (HFD) 327.10p -3.82%Bankers Inv Trust (BNKR) 375.40p -3.74%Rentokil Initial (RTO) 66.40p -3.70%Phoenix Group Holdings (DI) (PHNX) 499.90p -3.31%Kesa Electricals (KESA) 95.35p -3.10%--jh