Market report: Monday close

AN unwelcome hole has appeared in

He has agreed to stay on until the full-year results in May to give the company the chance to find a replacement with minimum disruption to operations, but Numis Securities - retaining a hold recommendation and a share price target of 610p - described it as a 'distraction the company could do without given the challenging trading conditions it faces'.

Long-suffering Boots put out a profits warning earlier this month as it told investors to brace themselves for sluggish consumer spending and slower-than-expected progress with cost-cutting. The shares slipped 5p to 609½p.

The FTSE 100 index closed 7 points lower at 4975, although support seemed to be coming from Wall Street, with the Dow Jones Industrial Average rebounding 11.38 points to 10,785.74. Volume in London is expected to be low this week, with many investors channelling funds into the Cheltenham racing festival, attended by the City en masse.

Crude oil prices eased after Opec officials indicated there is a chance they may decide to step up production at Wednesday's meeting in Iraq. But the most likely outcome, market sources say, is that production will remain unchanged. Oil futures are trading at well over $50 a barrel and traders say $60 oil is a realistic near-term prospect and that will keep a lid on stock valuations.

Shares in mmO2 were unmoved at 126¾p despite JP Morgan upgrading the mobile phones group to overweight from neutral and raising its target to 140p from 110p. There could be further good news if the company confirms rumours it is close to sealing a £350m contract with the ambulance service.

Separately, Merrill Lynch and Cazenove are placing 300m mmO2 shares as part of group restructuring.

Pearson was 1p up at 627p despite reports that disgruntled shareholders are urging it to appoint a chairman willing to push through radical reforms or face pressure for a break-up.

Alternative Investment Market-listed intellectual property company IP2IPO, which commercialises university technology, announced plans to spin off the Proximagen Neuroscience unit of King's College, London, its fourth IPO. The unit, which develops drugs for diseases such as Parkinson's and Alzheimer's, plans to list on Aim by the end of the month. IP2IPO raced 17½p higher to 740p.

Afren is the latest addition to Aim's lengthening list of exploration and production companies. Trading in the shares got under way today, with 40m placed at 20p each. They sped to a high of 73p before easing to 56½p. Set up last year, the company focuses on the high-potential Gulf of Guinea.

Black Sea Property Fund, an investment fund specialising in Bulgarian residential properties, floated on Aim and traded at 21½p, off a high of 25½p.

Office rental company Regus turned around early losses to close ¾p up at 104¾p despite full-year results showing operating losses are narrowing.

Dresdner Kleinwort Wasserstein said headline figures were buoyed by last year's acquisition of the US HQ and noted there was no further news on recent bid speculation.

Turbo Genset, which produces power-generation and power-conditioning products, held steady at 12p despite news it has secured £900,000 in financing on top of the £8m raised earlier this month.