Punters play a waiting game

CAUTION was the name of the game. Investors took a back seat ahead of today's Federal Open Market Committee meeting. Although the Fed is expected to shave US interest rates by a further 1/4%, taking them below 2% for the first time in more than 40 years, fund managers kept their powder dry.

Dealers are confident Alan Greenspan will sanction another cut because November's fall in US employment numbers, announced on Friday, made it the biggest back-toback drop in jobs since June 1980.

There was nothing on the domestic front to get the City excited. More the opposite. Newspaper publisher Trinity Mirror (14p down at 408 1/2p) got the day off to a dull start by warning that ad revenues had slumped.

The market then heard that factory gate prices charged by manufacturers fell in November at the fastest annual rate since records began 43 years ago.

The Footsie lost an early 11-point gain to trade 92.5 lower before closing 79.7 off at 5185. Sterling rose to $1.4350, with the euro easing to 61.95p.

British Airways was sold down to 210p amid reports that the troubled airline was planning to make another round of hefty job cuts and drop routes from the schedule to save cash. The stock later rallied strongly to finish 4 1/2p dearer at 228 1/4p after BA confirmed it was undertaking a strategic review of all aspects of the business to cut costs.

Newly- demerged mobile phone business mmO2 buzzed higher to 94 3/4p before succumbing to profittaking to finish 3 1/4p down at 88p. Broker ABN Amro advises a switch to former parent British Telecom, 11 1/2p off at 262p.

Aggreko, the world's biggest renter of generators, collapsed 74 1/2p to 326p following news of the planned retirement of chairman and chief executive Chris Masters in April 2002. Masters is well respected in the City and will be a hard act to follow. Aggreko plans to chop its capital expenditure by 30% to £70m next year.

Software company Total Systems jumped 13p to 136 1/2p following sharply higher interim profits of £772,911, up from £156,071, and a rise in the dividend from 0.80p to 0.90p. Shop broker Brewin Dolphin forecasts pretax profits of £1.2m on full-year sales of £5m.

Corporate Services held at 34p, despite confirmation of the sale of its French subsidiary, Euristt SA. The disposal transforms the balance sheet, reducing group debt from £164.9m to £60.5m.

With WestLB Panmure appointed to help in a strategic review of the company and rumours rife that a large division is about to be sold, buyers piled in for Celsis International. About 5% of the company changed hands and the close was 3 3/4p higher at 16p. Punters believe a predator would have to bid at least 45p.

IFTE edged up 2 1/2p to 125p. The Aim-listed group, which has developed a simulator to help train firefighters to tackle fires in aircraft, reported its first profit (£1.3m) since floating in 1999.

Menswear retailer Moss Bros advanced to 41 1/2p before succumbing to profit-taking and closing unchanged at 35 3/4p. Shami Ahmed, the multi-millionaire founder of the Joe Bloggs clothing empire, revealed late on Friday that he is considering launching a bid for the troubled company.

He has amassed a 5% stake via his Aim-listed investment vehicle, Legendary Investments, unchanged at 2 1/4p. Moss Bros chairman Keith Hamill has pooh-poohed the idea of Shami making a bid. He said the company had not had an approach.

Ahmed has built stakes in struggling retailers - Austin Reed and House of Fraser - before and then walked away. But word is he is serious this time.

Colt Telecom lost 12p to 146 1/2p, despite raising an extra £94m on top of the £400m it planned to raise via a new share issue backed by its largest holder, Fidelity.

#149; PROFIT-TAKING following flat interim earnings left Planit Holdings 5p off at 50p. Broker Beeson Gregory says the developer of computer-aided design software is a buy and forecasts a full-year pretax surplus of £5.3m and earnings per share of 4p. Recently-acquired Licom Systems is going like a train and provides Planit with a good platform to diversify into other niche markets. It cuts the group's exposure to the US from 70% to 50%.