Market slips after Vodafone sells US stake ; YESTERDAY IN THE CITY [Western Morning News (England)]
(Western Morning News (England) Via Acquire Media NewsEdge) The London market lost its shine as euphoria over Vodafone's Pounds 84 billion US exit faded and worries over conflict in the Middle East returned to haunt traders.
Shares in the mobile phone giant slumped more than 5%, helping drag the FTSE 100 Index 37.8 points lower to 6468.4.
Investors locked in profits after a week of gains, following Vodafone confirming the sale of its 45% share in Verizon Wireless - which will net shareholders a Pounds 54 billion cash and shares windfall.
While speculation over the sale had driven Vodafone's shares to their highest level since 2001, confirmation of the deal saw the stock lose some of its froth to stand 10.7p lower at 202.5p. The top tier was subdued after its 1.5% improvement on Monday, with a decent session for mining companies failing to offset concerns about military intervention in Syria. US president Barack Obama's call for strikes on Syria was given fresh impetus after he won the backing of US House Speaker John Boehner.
That helped ensure a sluggish start for the Dow Jones Industrial Average on Wall Street, while Germany's Dax and France's Cac 40 both closed in the red.
The pound edged lower against the dollar to 1.55, but made modest gains against the euro to 1.18.
Property firms were among stocks under pressure, with Land Securities off 27.5p to 881p and British Land down 14.5p at 552.5p.
Hot on the heels of Vodafone's deal, Microsoft announced it is buying Nokia's line-up of smartphones and patents in a bid to capture a slice of the lucrative mobile computing market.
Investors in Nokia welcomed the deal, sending shares in the company up by as much as 40% in Helsinki.
The biggest risers were Tullow Oil 25p firmer to 1043p and Hargreaves Lansdown up 16p to 1031p.
6468.4 The FTSE at last night's close - 37.8 points down on the day
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