The stock market found itself drifting early this week following further losses in the Far East. Dealers said the sharp falls in Hong Kong, Tokyo and Singapore were likely to dog stocks for some time as cautious trading characterised the London market. Far East turbulence saw the FTSE-100 index up 69 points on Monday but hesitating on Tuesday, when it slipped 36.6 points to 5225.7 in early trading. The engineering sector index was up 31.1 at 2666.8.
BTR, the conglomerate refocusing on engineering, was up 6p at 189.5p, but still some way off last year’s high of 289p.
Defence company GKN announced a major Canadian government order for helicopters, a deal won in the face of tough competition, and saw shares leap 38p to £13.15.
Rolls-Royce said it would pump £300m over two years into its civil aviation business. Its shares closed down 1p at 238p.
LucasVarity denied a report that it wanted to buy TI Group’s Dowty Aerospace subsidiary. Speculation that the unit might be for sale was sparked by TI’s unexpected decision last month to sell its stake in Messier-Dowty, the landing gear venture it owned jointly with Snecma of France.
Both TI and LucasVarity denied the report, though TI’s shares climbed on the back of the claim, rising 20 to 490p. LucasVarity’s shares rose 2.5p to 224p.