London pre-open: BP to sink Footsie

10th Jun 2010 07:41

The FTSE 100 looks like it'll be dragged back towards 5,000 in early trade after a late slip on Wall Street, while BP may mirror the 16% slump in its US-listed stock last night.Wednesday's plunge in the value of its US stock has shocked British oil giant BP into issuing a statement this morning claiming it knows of no reason for the dramatic sell-off. BP shares slumped 16% in heavy US trade as rumours did the rounds that the Gulf of Mexico oil disaster could force the business into bankruptcy, or at the very least cause it to axe the dividend. The cost of the spill has now reached $1.43bn (£982m).Home Retail Group complained of shoppers' reluctance to part with their cash in uncertain economic times as it reported a decline in like-for-like sales at both its Argos and Homebase stores in the 13 weeks to 29 May. Argos like-for-like sales were down by 8.1% on a year ago, while DIY chain Homebase, suffered a less painful 1.4%, decline.Electronic and industrial components supplier Premier Farnell issued a confident outlook for 2010 as quarterly profit more than doubled. Total profit before taxation rose to £22.2m in the three months to the end of April 2011 from £9m the year before. Revenue advanced 20% to £244.9m. Premier said, "the very positive momentum in sales growth that we have seen in the first quarter has accelerated in all of our distribution businesses in May with group sales growing 30% year on year."Car parts and bicycle retailer Halfords said it is confident of future earnings growth despite the uncertain economic outlook after posting a sharp rise in profits and revenues in the year to April 2. Pre-tax profits climbed to £117.1m from £92.4m on revenues that were up to £831.6m from £794.7m. The full-year dividend climbed to 20p from 15.9p.