London close: Footsie slumps in last hour

A last hour slump sent Footsie into the red by the close of a roller-coaster day.The index had been over 50 points higher in mid-afternoon after US second quarter gross domestic product (GDP) was revised upwards to show a 1.7% quarterly increase. But the Dow turned down sharply soon after, dragging Footsie with it.Man, BP and Smiths Group were the best performers. BP continues to rally after the managerial shuffle yesterday, while Man is picking up after its recent trading update.Compass Group headed south even after the contract caterer upped its sales growth guidance again after a strong fourth quarter. Having said in late July that organic sales growth this year would be around 2.5% the company now thinks it will be closer to 3%, including the impact of acquisitions.Inter-dealer broker ICAP was also lower as it warned earnings would be hit by debt refinancing costs. The company said that current profit forecasts from the investment analyst community for the year to March 2011, which range from £333m to £357m, appear 'reasonable' assuming steady exchange rates.Sugar and sweetener firm Tate & Lyle expects its encouraging start to the year to continue in spite of higher corn costs. In the speciality food ingredients division, growth in speciality sweeteners and starches has remained steady, while sucralose volumes have been robust, though at lower selling prices, the company said.Private equity house 3i spent much more money on investments and sold far less during the five months to the end of August, it revealed ahead of meetings with analysts and investors. The blue chip firm made investments of £257m during the period, up from £155m last year when the financial crisis was still raging. Buyouts accounted for £236m and growth capital £21m.Rolls-Royce chief executive Sir John Rose will retire from the company at the end of March 2011. He will be succeeded by John Rishton, currently chief executive of the Dutch retail group Royal Ahold. John Rishton has been a non-executive director of Rolls-Royce since 2007 and chairs the Audit Committee.Another company upping its sales guidance is ITE. The exhibitions group said it enjoyed strong trading in the fourth quarter and expects revenue for the year to end-September to be around £112m, down from last year's £117m, but comfortably ahead of market expectations of £108.4m.Persistent bid rumours buoy the share price of high fashion group Burberry, with the suggestion being that the company could fall into foreign hands when a bid of around 1350p a share is forthcoming.Shares in Aggreko are also a hot property at the moment. The firm has been contracted to provide temporary power generation services for the 2010 Asian Games and Asian Para Games in a deal that is expected to be worth $30m.Increased profits from its cheese products have underpinned an improvement in trading at dairy goods firm Dairy Crest. The company said trading in the six months to the end of September has been in line with management expectations and ahead of last year.KBC Peel Hunt is recommending holding the shares in the wake of yesterday's announcement that German food group Müller has upped its stake to 3.04%. "The shares look up with events on a fundamental basis, although the interest from Mueller is likely to provide upwards momentum in the short term," Peel Hunt said.Scottish chip designer Wolfson Microelectronics was buzzing on reports emanating from Asia that the fifth generation of Apple's much-lauded iPhone and the next iteration of the same company's tablet computer, the iPad, will continue to use Wolfson's audio chip designs. Shares in Homeserve dipped after the home emergency business even after it said profits for the first half of the year will be ahead of the same period the previous year and in line with expectations.Property developer St Modwen Properties' trading is not deteriorating. The company has made significant progress in all areas of the business, following its return to profit at the half year stage.Sticking with the property sector, property investment firm Quintain Estates said strong progress has been made in the last six months towards its key milestones for the financial year. In a trading update for the six months to 30 September 2010 the social housing and regeneration specialist said it is confident of further delivery during the current calendar year.FTSE 100 - RisersMan Group (EMG) 219.10p +2.77%BP (BP.) 431.55p +2.51%Smiths Group (SMIN) 1,219.00p +1.92%Eurasian Natural Resources (ENRC) 920.00p +1.77%FTSE 100 - FallersCompass Group (CPG) 530.50p -3.81%Standard Chartered (STAN) 1,826.00p -2.92%ARM Holdings (ARM) 392.20p -2.63%Morrison (Wm) Supermarkets (MRW) 295.70p -2.12%FTSE 250 - RisersSenior (SNR) 139.50p +8.22%Daejan Holdings (DJAN) 2,600.00p +5.99%CSR (CSR) 359.20p +4.81%Forth Ports (FPT) 1,376.00p +4.40%FTSE 250 - FallersHomeserve (HSV) 439.50p -6.53%Xchanging (XCH) 143.00p -6.29%Petropavlovsk (POG) 1,112.00p -4.96%Hansen Transmissions International (HSN) 48.17p -4.80%