Just a big yawn in the dealing rooms

CHANCELLOR Gordon Brown's Budget proposals, many of them leaked, left the City underwhelmed. Confirmation of higher taxes through a 1% increase in National Insurance to fund higher public spending proved the highlight for dealers, who otherwise found it difficult to stifle yawns after the hour-long speech.

Fed chairman Alan Greenspan's testimony to the US Joint Economic Committee also failed to inspire. He said the strength of the US recovery remains unclear, but the current low rate of inflation means the Fed has time to wait for a solid recovery. Bulls interpreted that as meaning that a short-term rise in US interest rates was unlikely.

Profit-taking after Wednesday's jump on Intel's better-than-expected first-quarter figures dragged Wall Street lower in the early stages. Up 32.4 at best, the FTSE 100 drifted to finish only 4 points up at 5263.9.

A notable post-Budget mover was BP, which shed 7p to 598p following the imposition of an extra 10% tax on North Sea oil profits. Shell moved 1p to 507p.

Alkane Energy, which produces coal mine methane, a natural fuel from abandoned coal mines, rose 5 1/2p to 109 1/2p on hopes that it will benefit from concessions on climate change levy. CMM, used directly as an industrial fuel, is currently exempt from the levy, but distributed electricity generated from it is not. The changes, effective from this summer, will help revenues from CMM gas sales rise 15%.

Tobacco stocks cheapened after a further 6p of duty was put on a packet of 20 cigarettes. But hopes that the freeze on bingo taxes will boost revenues lifted Rank Group 3 1/4p to 288 1/4p. Elsewhere, Hilton, whose interests include hotels and Ladbrokes betting shops, raced 9 3/4p ahead to 261p. Ladbrokes signed a five-year data rights agreement with the British Horseracing Board. In return for pre-race data, it will pay the BHB 10% of its gross profits on British horseracing.

Persistent selling left heavily-indebted cable company Telewest 1.95p down at 8p. Turnover swelled to 77.8m as investors ran for the exit on fears that it will soon follow bigger rival NTL in seeking to cut its £5.1bn of debt through a debt-for-equity swap.

Punters clicked on to online travel group Lastminute.com amid vague takeover rumours, and the close was 8p higher at 84 3/4p. It has rallied from a November all-time low of 18 3/4p following February's encouraging first-quarter figures and its recent acquisition of Travelselect.com. Investors believe this dotcom has a long-term future.

Innovations, a provider of software and services to the insurance industry, jumped 21p to 167 1/2p after winning a £12.5m contract for its workers' compensation claims software. It has also bought the intellectual property rights of InterX (1p easier at 21 1/2p) for up to £8.3m, depending on performance.

Eyebrows were raised when a line of 1.16m Turbo Genset shares went through on the ticker at 41p, almost 20p below the market price. Bears have periodically mauled the maker of portable generators because of worries about future profitability. It closed 8p down at a low of 60 1/2p.

Car and motorbike dealer Dixons Motors accelerated 12p to 272p on talk that a 300p-a-share bid, worth £109m, will arrive on the group's forecourt from North-Eastern rival Reg Vardy, 1p dearer at 396 1/2p. Dixons owns the Motorcycle City chain and supplies Direct Line's Jamjar.com.

Aim-listed building group Darby rose 5p to 24 1/2p after director Hugh Hayes bought 5,000 shares at 20p.

OverNetData advanced 4 1/2p to 22p following the launch of its ConfNET mobile software for conference delegates. Engineer Vitec plummeted 60p to 497 1/2p after reiterating that the current year is proving to be very tough.

Aim-listed sports management and marketing agency Proactive Sports improved 2p to 21p after concluding a a sponsorship agreement between Manchester City and First Advice.