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FTSE 100 ends mixed

LONDON: Blue chip share prices ended a quiet session with modest gains, constrained by bonds and unimpressed by a 1/2-point cut in German interest rates which followed the latest Bundesbank meeting.

Dealers and analysts said the market is likely to remain in the doldrums tomorrow ahead of a three-day weekend and after breaching record best levels on the FTSE 100 early this week.

The FTSE 100 index closed 4.1 points up at 3,520.0 on a 725 million turnover, boosted by the sale of Enterprise's 94 million share stake in LASMO.

The Dow was narrowly mixed as the London market closed.

George Hodgson, equity strategist at SBC Warburg said "It's a little bit surpising to see such a low key reaction to the Bundesbank. The bond market is capping equities."

The September long gilt future was 2/32 up at 106-6/32. Sterling at 2.2773/83 marks, was off its session high and down on late Wednesday's 2.2820/30 marks.

Hodgson added, "If the cut had happened three days ago you would have seen a more encouraging response. The markets haven't even greeted the US (durable goods orders) data very well."

US July durable showed a 1.7 percent fall, the biggest drop since April, against expectations of a 0.8 percent rise.

The shares went to a range of institutions and raised 166.4 milion stg. LASMO was 2p lower at 182.

Rentokil was 6p up at 298 after posting a 23.2 percent rise in pre-tax profits to 99.2 million stg, at the top end of market estimates.

Computer software makers rose, bolstered by extensive media coverage of the launch today of Microsoft's Windows 95 operating system.

Accounting software maker Sage Group gained 53p to 1,203, application software supplier Misys added 24 to 519, while Sema Group rose 4p to 407.

WPP, the world's biggest advertising and market services group, gained 5p at 145, after news first half pre-tax profits rose 34 percent to 48.5 million stg and a confident trading statement. Forecasts were for 40-50 million. -Reuter