London open: Shares drift lower

4th Apr 2011 08:27

The top share index has drifted slightly lower in early dealings though a couple of big hitters have moved higher after updates.It has been a morning for asset sales with both telecoms giant Vodafone and oil colossus BP pressing on with their respective asset sale programmes. Vodafone's sale of what it considers non-core minority stakes continues with the sale of its 44% holding in French mobile phone group SFR to French media group Vivendi for €7.75bn (£6.8bn) in cash. The shares are higher.BP is to sell its wholly owned subsidiary ARCO Aluminium to a consortium of Japanese companies for $680m in cash.Elsewhere in the oil and gas sector BG Group has made a third gas discovery in Tanzania. The oil and gas group made the discovery about 18km off southern Tanzania at a depth of about 950 metres. The discovery is about 200km south of BG's previously announced Pweza and Chewa discoveries.Aggreko has moved higher after the temporary power supplier said it is to help Japan keep its electricity supply up and running after last month's devastating earthquake. The Tokyo Electric Power Company Incorporated (TEPCO) has signed a letter of intent with Aggreko stating that it intends, subject to negotiation of definitive terms, to award Aggreko a contract for the rental of 200 megawatts (MW) of emergency power. The contract, half of which will be generated from gas and half from diesel, would be for a minimum one year term. East Yorkshire-based pork supplier Cranswick said results for the year to 31 March 2011 will be broadly in line with expectations. Underlying like-for-like sales for the year to 31 March 2011 increased by 4% while volumes during the period gained 6% on the same basis. Underlying sales in the fourth quarter were in line with those of the previous year. Operating margin was in line with management's expectations.RG