Market report: Wednesday close

Cairn was catapulted into the top flight last September following a spectacular run by the shares that greeted a big oil find in India.

The price rocketed from a low of 380p at the start of last year to a peak of 1570p in November, when it was valued at about £2.5bn. But news of a dry well in December brought shareholders back to earth with a bump and spelt the end of its flirtation with the top flight.

Today the shares were trading 22p dearer at 1228p although the price tag has shrunk to less than £2bn. Cairn will be replaced by electricity generator International Power, 3½p down at 178½p, with a stock market value of £2.68bn.

Narrowly missing promotion is Britain's biggest plasterboard manufacturer BPB, 3½p lower at 509½p, with a capitalisation of £2.56bn. Its shares have shot up from 345p during the past year. But it was held off by publisher Emap, 1½p down at 852½p.

Share prices ran out of steam after an early mark-up, undermined by an opening fall for the Dow Jones Industrial Average on Wall Street this afternoon in the face of a rising oil price and evidence of a tightening in US monetary policy.

Investors in London also had to contend with a long list of heavyweight companies going ex-dividend, the equivalent of a fall of almost 10 points in the index. They included Royal Bank of Scotland, down 54p at 1729p, which went ex a 41p dividend, BAT, off 37p at 931p, (29.2p), and mining giant Anglo American, down 25p to 1287p, (29.8 cents). The FTSE 100 index fell 14.82 points to 4,996.1.

The world's biggest advertising agency, WPP, saw some big share turnover as the shares retreated 2½p to 623p. More than 40m changed hands and 16.95m went through on the ticker at 623p. US broker Morgan Stanley did the business and looks to have sold the shares on to institutions at 624p. The man behind WPP is Sir Martin Sorrell, who owns 17m shares, or less than 1½% of the company.

Heavy turnover was also seen in Lloyds TSB, up ¾p at 503p as more than 90m shares changed hands. A line of 50m went through as part of a currency conversion at 501½p.

Drugs giant AstraZeneca lost 7p to 2135p even though a case study revealed its cholesterol treatment Crestor has been shown to reduce protein levels in black patients. Rival GlaxoSmithKline shaded 10p to 1259p as the US Justice Department began investigating some of its pricing arrangements. Brokers say this forms part of a much wider probe.

It was the first day of dealings on the Alternative Investment Market (Aim) for Accuma, a company specialising in personal debt management, following a placing of 5m shares by broker Daniel Stewart at 82p that valued the business at £16.75m. They opened at 99½p and touched 119p before settling at 112p.

It was also the first day of trading on Aim for In Cup Plus, which makes drinks vending machines. More than 30m shares were placed at 6.5p by Daniel Stewart and they traded at 7.88p.

Housebuilder Westbury fell 18¾p to 473p after brokers Teather & Greenwood and Panmure Gordon downgraded from buy to hold in the wake of profits numbers.