US data drags FTSE down

It may not be a terribly glamorous sector, but the building materials business was one bright spot today. Better-than-expected results from builder's merchant and Wickes DIY owner Travis Perkins sent its shares soaring 80p to £16.05p. It reported flat half-year profits of £110m but analysts had been expecting a fall of anything up to 10%.

Larger rival Wolseley benefited, adding 8p to £11.48p.

Ratcatcher Rentokil Initial was also in demand, up 1.5p to 165.25p as traders said the shares were undervalued. Sugar producer Tate & Lyle continued its good run on hopes of a boost to its US business after an American-Mexican deal on sweeteners, up another 7p to 692p.

Standard Life rose 2.5p to 252.5p after the life insurer reported half-year sales had climbed 17%. Analysts at Evolution Securities said the figures were better than expected and set a 280p target for the recently listed shares.

Imperial Leather soaps and trading business PZ Cussons also did well after its results. The shares climbed 58p to £14.58 as full-year profits came in 9% ahead at £63.6m, with strong sales from Nigeria and the elimination of losses after it retreated from Russia and eastern Europe. Broker Oriel Securities rated the shares a buy.

Banking group HBOS slipped 2p to 972.5p despite a 13% rise in first-half profits, with some analysts expressing disappointment at a 4% rise in earnings at the retail business. But Dresdner Kleinwort remained positive and raised its price target from £11.00 to £11.50. "On declared earnings HBOS is very cheap," said the analysts. "Adjusting for hidden [deferred] profits in its life business, it becomes absurdly cheap."

Insurance group Resolution fell 7p to 560.5p on talk that Citigroup had placed 13m shares - 2% of the company - at 557p.

It was a big day in the sporting world too, with bookmaker William Hill 2.5p higher at 593.5p as its half-year profits rose 22.9%. Sportingbet fell 10.75p to 235p, with continuing worries about the justice department actions against online gambling companies in the US outweighing an upbeat trading statement. Fellow online gambling companies PartyGaming, down 3.75p to 105.75p, and 888 Holdings, 12p lower at 143p, were also caught in the continuing fallout of the BetonSports arrests. Yesterday eight people connected with BetonSports appeared in a US court to plead not guilty to charges of fraud, racketeering and unlawful gaming.

Lower down the market, Central China Goldfields edged up 0.5p to 15.5p after another upbeat report showing a potential third gold deposit at its Snow Mountain project.

Island Oil & Gas announced a gas discovery off the coast of Ireland and its shares added 20.5p to 117.5p.

But it was a bad day for investors in Aerobox, which specialises in manufacturing containers for the freight and air cargo industries, with its shares falling 1.625p to 1.5p The company had planned to increase production at its main subsidiary, ACS, but found its machinery was not reliable enough for the increased workload. The resulting production bottlenecks meant output was below the forecasts the company made when negotiating its $3m debt facility with investment group Laurus Master Fund.

Laurus reviewed its position and agreed to supply sufficient working capital for the company to complete its orders to mid-September. But there is no indication the long-term debt facility will still be available. The company has cut 33 staff and is in talks with its creditors. It is reviewing all its options, including a possible sale of ACS.

India Hospitality Group - which has raised $100m to buy an Indian business focussed on leisure and tourism - joined AIM today. It has issued units worth $6 each, comprising one share and two warrants. The shares closed at $5.7 and the warrants at $0.75, meaning the value of each unit had risen to $7.2.

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