THE impact of a range of leading companies going ex-dividend dragged the stock market down as dealers digested takeover news and trading statements.
The FT-SE 100 index closed down 5.7 points to 4331.1 having recovered from a low of 21 points down.
Banking giant Barclays, down 33p to 1096p and Lloyds TSB, down 12p to 502p, as well as Carlton Communications, down 8 1/2p to 544 1/2p and SmithKline Beecham down 11p to 910 1/2p, all ex-dividend depressed the market.
Staying with the blue chip stocks, defence and aviation giant British Aerospace rose today despite a report in the Financial Times that merger talks with General Electric were close to collapse.
The shares were up 9 1/2p at 1269 1/2p while shares in GEC were 2p lower at 372 1/2p.
Hanson, the rump business left behind after the demerger of its four main other businesses, rose 2p to 281 1/2p on the first day in its new incarnation.
Energy Group, the latest demerged Hanson company that includes the UK electricity group Eastern, gained 43p on their debut to 568 1/2p.
Shares in Yorkshire Electricity rocketed after the regional electricity group said it had agreed to a £1.5 billion cash offer from a US partnership.
Yorkshire Holdings, a company jointly owned by American Electric Power and Public Service Colorado, offered 927p a share in cash compared with the price of 818 1/2p at the close of trading on Friday.
If the bid, which is backed by the UK company's board, is successful only one regional electricity company - Southern - will still be independent out of the 12 privatised in 1990.
Shares in the Leeds based company surged ahead 62p to 882p. Southern gained 26p to 770p.
Shares in rental giant Thorn gained after the company announced an 8 per cent rise in taxable profit, and plans to shut 90 inefficient Radio Rentals outlets with the loss of 360 jobs.
The company made £123 million before exceptional items in the nine months to December 31st. The shares gained 17p to 203 1/2p.
PPL Therapeutics, the biotechnology company, today benefited from its role in the successful cloning of an adult sheep that was revealed over the weekend.
The company, which floated last year, gained 52 1/2p to 387 1/2p.
Also in the biotech and pharmaceutical sector, Shield Diagnostic gained 38p to 567 1/2p as the stock continued to recover ahead of expected news on heart drugs, while Stanford Rock tumbled 105p to 530p after tuberculosis test results were delayed.
Restaurant group Pizza Express cashed in on the return to fashion of eating out to record a 54 per cent rise in half year profits published.
