Market report: Thursday close

CITY investors failed to hold the market above the 4200 level as Wall Street kicked in this afternoon with opening falls.

Buyers in London were thin on the ground as support levels were tested with the FTSE 100 index losing an early gain to end the day down 8.4 at 4198.0. The upward revision in US gross domestic product from 2.4% to 3.1% was countered by higher jobless claims.

Fourth-quarter earnings from recently merged BHP Billiton, up 9 1/2p at 413p, jumped 75%, but the mining giant posted a modest 2.9% increase in full-year net profit of US$1.866bn (£1.187bn). London and Sydney-listed BHP blamed 'weak' and 'anaemic' global demand for the flat result, which was struck on a 15% increase in turnover to $117.5bn.

This was due to higher volume sales of iron ore, coal, copper, and aluminium.

Profits after exceptional items and discontinued operations came in at $1.9bn, up $211m on last year. The group is looking for $500m in merger savings by 2005.

Advertising giant WPP rose 4 1/4p to 577p after a survey indicated 15 of the company's top 25 clients plan to increase their spending.

Retailer Woolworths fell 1/2p to 38 3/4p, after Investec downgraded its rating from hold to reduce following a profits warning from WH Smith.

Financial PR and advertising outfit Incepta drifted 2p from a year's high of 21 3/4p after broker UBS downgraded the shares from buy to neutral because it thinks they are now looking too expensive. It generously raised its 12-month target price by 1p to 21p to reflect the current appetite for recovery plays by private investors. A trading update is due on Monday ahead of interims in October.

UBS points out that the price has rallied by about 55% since announcing a rights issue and placing last month. Some brokers have been pinning their hopes on bullish comments about current trading following the recent pick-up in sentiment in the financial markets. UBS is sceptical.

Meanwhile, UBS has upgraded property developer Hammerson, down 6 1/2p to 546 1/2p, from neutral to buy on the back of interim results yesterday showing pre-tax profits up £10m at £47.4m. It has also lifted its target price from 555p to 625p.

Business parks developer Slough Estates lost 11 3/4p to 369p as it reported a fall in half-year pre-tax profits, 5.8% to £71.8m. New chief executive Ian Coull said he would sell four non-core assets, worth about £160m.

Hedge fund operator Man Group rose 17p to 1227p. US securities house Morgan Stanley has upgraded its recommendation from equal weight to overweight and set a target price of 1400p. Institutional investors have discovered an appetite for hedge funds, helping Man swell the cash rolling in to record levels.

AIM-listed Motion Media tumbled 5 1/4p to 13p as it tried to play down speculation that a major order for its new mm146 videophone for use in the cable TV market was about to be announced. The company has high hopes for the product and said it is in talks with a number of significant companies, but talk of a substantial order is wide of the mark.

Newcastle United's failure to grasp a place in the European Champions League after losing a penalty shoot-out to Partizan Belgrade left the shares 4 1/2p lower at 32p.

Bid hopes lifted flat audio speakers designer NXT 8 1/2p to 18p.