Profit-taking leaves FTSE struggling for direction

Blue chip stocks saw a quieter day after striding ahead in the previous session following news that US and Japanese central banks signalled plans to maintain low borrowing costs to help foster economic growth.

The FTSE 100 Index closed down 2.01 points at 5642.62, with little momentum offered from across the Atlantic.

Wall Street's Dow Jones Industrial Average clung to its opening mark as investors digested recent economic developments that drove stock

markets higher on Wednesday.

The Philadelphia Federal Reserve Bank's index showed factory activity expanded more than expected in March, although new orders fell. Earlier, the US government said the Consumer Price Index was flat in February, backing up the Federal Reserve's commitment to keep its benchmark interest rate ultra low for a while.

Both Nike and GameStop rallied after reporting results. Nike's stock climbed 5.6 per cent to $74.87, following the largest global sports gear maker's report late on Wednesday of a third-quarter profit that beat expectations. GameStop shares shot up 7.3 per cent to $21.30 after the video-game retailer forecast full-year sales growth of 4 per cent to 6 per cent.

IG Index strategist Anthony Grech said: "It appears that an element of profit-taking has overcome investors as the previously buoyant mining and bank sectors find themselves raided. Investors generally seem content to bank recent gains for now."

In currency news, the pound slipped back against the dollar after gaining strength on Wednesday following positive economic indicators in the UK. It was down marginally to 1.52 dollars yesterday, but was up to 1.12 euros.

After better news on unemployment figures in the previous session, there was also a glimmer of hope for Britain's battered public purse yesterday after February net borrowing figures came in lower than expected.

Among stocks, banks dominated the fallers' board, with Royal Bank of Scotland and Lloyds Banking Group among the worst hit, down 11/2p to 42p and 17/8p to 551/2p respectively.

HSBC slid 113/4p to 681p and Barclays was down 61/2p to 3527/8p as Citigroup brokers downgraded their ratings on the global financial sector and said it could become a "problem child".

Miners also declined as precious metals saw a softer session. Vedanta Resources was the sector's biggest casualty, down 65p to 2706p.

GlaxoSmithKline led the risers' board with a gain of 471/2p to 1272p, closely followed by oil and gas firm BG Group. BG added 18p to stand at 1191p on vague rumours of interest from ExxonMobil.

In the FTSE 250 Index, bakery chain Greggs lifted 18.3p to 455.3p after it announced an 8 per cent advance in annual profits to 48.8m.

The company also stuck by plans for accelerated expansion in the next few years and said it would achieve modest sales growth this year, despite economic conditions.

Transport group Arriva added another 31p, or 5 per cent, to stand at 708p after its 17 per cent gain on Wednesday as suitor Deutsche Bahn formally confirmed bid talks with the company.

Insulation group SIG moved in the opposite direction, down 9 per cent, or 111/4p to 1161/8p, after it said it had lost 30m in sales due to the recent cold weather.

The biggest Footsie risers were GlaxoSmithKline, Experian ahead 14p to 642p, SABMiller up 36p to 1925p, and Aggreko up 19p to 1154p. The biggest faller was Royal Bank of Scotland.