The London market pulled back from near an all-time high today after a slump in shares for British Gas owner Centrica and stalemate in Greece’s debt talks.
The Greek government offered to extend its rescue loan agreement by six months but Germany said the move “is not a substantial proposal for a solution.”
The FTSE 100 Index closed 9.2 points down at 6888.9, in a lacklustre session which saw the top flight shy away from 15-year highs.
The pound rose against the US dollar, to 1.54, after dovish comments from the Federal Reserve about not hiking rates. Sterling rose against the euro to 1.36.
Much of the City’s attention was on Centrica after more than £1 billion was wiped from the value of the blue-chip giant following a cut in its dividend, which hit the group’s army of 650,000 small investors.
Residential supply operating profits for 2014 fell 23% to £439 million amid a half-million fall in customer accounts and a £100 decline in average bills over 2014 as gas consumption dropped by a fifth amid warmer weather.
The group said it had taken the “difficult decision” to rebase its shareholder dividend, with the full-year pay-out for 2014 set to be 21% lower at 13.5p.
Chief executive Iain Conn told investors: “2014 was a very difficult year for Centrica and the recent fall in oil and gas prices creates further challenge.”
Shares dropped 24p to 257.1p, a fall of 8%.
Meanwhile, BAE Systems held firm despite reporting a £1.5 billion drop in sales to £16.6 billion for 2014, as well as an 11% fall in underlying earnings.
Chief executive Ian King expects a return to growth this year, helping shares firm 3.5p to 525.5p. Fellow defence products firm Rolls-Royce was at the top of the FTSE 100 risers board with a gain of 3% or 27.5p to 962p.
Elsewhere in the top flight, commodity stocks were under pressure as the price of Brent crude oil dipped back below 60 US dollars a barrel.
BP was 5.6p lower at 445.7p and Royal Dutch Shell eased 46.5p to 2198p.
In the FTSE 250 Index, drinks can maker Rexam surged 6% or 32.5p to 569.5p after it backed a sweetened £4.4 billion takeover offer from US rival Ball.
The merger will make the combined group the leading global drinks manufacturer, with a presence in the US, Latin America, Europe, Asia and the Middle East.
The deal is expected to complete in the second half of next year, subject to regulatory approval.
The biggest risers in the FTSE 100 Index were Rolls-Royce up 27.5p at 962p, easyJet up 37p at 1785p, Dixons Carphone up 8.6p at 441.6p and Associated British Foods up 59p at 3057p.
The biggest fallers in the FTSE 100 Index were Centrica down 24p at 257.1p, Babcock down 60p at 996p, Anglo American down 36p at 1223p and Tullow Oil down 10.9p at 398.2p.
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