Footsie loses ground as Royal Dutch Shell misses market forecasts

FTSE: 5,983.34 (–16.73) Mid-250: 11,575.83 (–30.83) Small Cap: 3,269.81 (–2

FTSE: 5,983.34 (–16.73) Mid-250: 11,575.83 (–30.83) Small Cap: 3,269.81 (–2.65)RESULTS AND interim statements from some of the FTSE 100's most actively traded stocks provided most of the positives in London yesterday as profit taking in the resources sectors pushed the market lower.

London’s benchmark index was down 17 points, or 0.3 per cent, to 5,983.34 by the close of trade as Royal Dutch Shell missed market forecasts in spite of reporting fourth-quarter net profit of nearly five times that in the same period a year ago and announcing a dividend of 42 cents a share.

“The numbers are not as strong as expected as a result of a poor performance in the Downstream segment, but the dividend was in line with our forecast,” said Stuart Joyner at Investec, who maintained a “buy” rating on the stock.

Shell’s rival BP, whose return to paying dividends was overshadowed by weaker-than-expected results on Tuesday, fell 2.1 per cent to 477.95p.

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Vodafone reported its third-quarter service revenues were up 2.5 per cent, beating estimates of a 2.4 per cent increase.

The company said that strong results from India, Turkey and the UK, along with an improving performance in Europe, encouraged it to push its profit outlook higher to the top end of its £11.8 billion-£12.2 billion range. The shares, however, eased 0.1 per cent to 177p.

Fixed line operator BT reported a forecast-beating 7 per cent increase in its third-quarter operating profit. Investors were also pleased at news of the company’s shrinking pension deficit and pushed the shares 3.6 per cent higher to 184.9p.

Household goods and food group Unilever said its full-year profit was up 26 per cent and announced a quarterly dividend of €0.208 (18p). The Anglo-Dutch group said its results held up well in the face of intense competition, falling consumer confidence and a rapid increase in the cost of raw materials. The shares, however, fell 1.1 per cent to £18.37 on concerns over the outlook.

Tui Travel said its first-quarter revenues, covering the three months to December 31st, were up 6 per cent. The company, which makes most of its profit in the second half of its financial year, shares fell 1.6 per cent to 243p.

Compass, the world’s biggest contract caterer, rose 1.4 per cent to 563p after it reported revenue growth of 5.5 per cent thanks to new contract wins. – (Copyright The Financial Times Limited 2011)