Britain's FTSE 100 ended mixed yesterday, as a buoyant banking sector and some solid early gains on Wall Street failed to shake the market out of its summer slumber.
The blue chip index ended up a marginal 3.6 points at 6,469.0, after trading within a narrow 50-point band near the centre of its 6,200-6,600 range which has held since the start of June. Volume was a moderate 1.2 billion shares, with gainers outnumbering losers roughly two to one.
"We are just stuck in a summer lull and it looks like that is going to continue for the next couple of months," said Morgan Stanley Dean Witter strategist Mr Graham Secker.
Wall Street's positive reaction to yesterday's key comments by Federal Reserve Chairman Alan Greenspan, brought little response from London. The Dow Jones industrial average was up 126 points at London's close and the Nasdaq was up 108 points.
"Everybody is waiting and sitting on the sidelines and nobody wants to take a big bet," Mr Secker said.
Banks offered some upward drive, adding 20 points to the FTSE 100 index as their results season kicked off on a positive note, with Northern Rock announcing second-quarter results at the top end of expectations.
Shares in Northern Rock, which is ranked as a mid cap, rose 8.2 per cent. Alliance & Leicester, which is set to announce results one 1 per cent. Lloyds TSB, Barclays and HSBC were all up more than 2 per cent.
The banking sector's move up was countered by a drop in the oil and gas sector, which knocked 18 points off the FTSE 100. Heavyweight BP Amoco fell 2 per cent and was responsible for 13 of those index points.
Retailers were among the day's top percentage losers in the FTSE 100, troubled by reports that the world's largest retailer Wal-Mart had launched a price discount campaign at its first UK superstore.
Kingfisher Plc and Marks & Spencer were both down about 4 per cent. Great Universal Stores was down more than 2 per cent.
Joining the decliners was Imperial Chemical Industries, which fell 3 per cent, extending Wednesday's losses after an analyst's downgrade and as investors appeared to show some nervousness ahead of results due out next week.
Technology shares fared better, with ARM Holdings, Misys, CMG and Logica hogging the four top slots in the FTSE 100's list of biggest percentage gainers.