950811

FTSE 100 mixed to

lower ahead of

US price data

LONDON: UK shares continued mixed to lower, drifting as caution ahead of US economic data due this afternoon kept activity sparse, dealers said.

A weaker close on Wall Street overnight kept UK shares in negative territory, despite renewed takeover speculation in regional electricity companies.

"Business is very quiet," said one dealer. "There just doesn't seem to be very much out there for people to get their teeth into."

AT 1052 GMT the FTSE 100 was 1.4 points lower at 3, 473.3 on volume of 235.1 million.

While dealers reported limited selling pressure, interest remained selective, they said.

Weakness in US Treasuries in spite of a well-bid 30-year bond auction led Wall Street lower. The Dow closed down 27.83 points at 4,643.66.

Technology stocks, prime movers in the US market's climb to first half highs, were once again weak.

With no major economic data out in the UK attention is on the US economy, with consumer price data and retail sales figures for July. Both are forecast to rise by 0.2 percent.

In the UK, gilts opened lower, broadly in line with Bunds after profit taking in US Treasuries overnight.

Gilts are seen trading in a narrow range ahead of the US price and sales data at 1230 GMT.

The CBI distributive trade survey released overnight found modest pick-up in high street spending, boosted by summer sales and the heatwave.

Bid activity again dominated corporate news with South Western Electricity announcing it is in talks with Southern Electric of the UK which may lead to a recommended bid by Southern of over 10 stg a share.

South Western is currently the subject of a one billion stg, nine stg per share, offer from Southern Co of the US.

South Western was up 26p at 945. Southern Electric fell 46p to 732.

Company results included Unilever Plc which fell 29p to 1,251 on a flat growth outlook for the second half, despite better-than-expected second quarter pre-tax profits of 655 million stg.

Carlton Communications rose 9p to 1,076, helped by government proposals which would clear the way for at least 18 digital terrestrial television channels in the U.K.-Reuter