Both the FTSE 100 and the FTSE 250 were lower in London on Tuesday as the online gaming sector saw further losses. Also affecting investor sentiment was a report that inflation in the UK was up more than had been expected, which could in turn lead to a hike in interest rates from the Bank of England.
The 100 was 0.3 percent lower on the session to 5,681.7, bringing its losses to 3 percent in the past four days. Meanwhile, the 250 dropped 0.5 percent to 8,968.8.
The utilities sector had a good day, however. Kelda Group gained 4.2 percent to 844p on bids rumors. Kelda has added 7.1 percent in three sessions. Severn Trent was up 2.2 percent to £12.21, while Pennon Group advanced by 2.1 percent to £13.99. United Utilities added 1.7 percent to 637p on an upgrade to “buy” from Dresdner Kleinwort. Scottish & Southern was up 1.6 percent to £11.66.
Also seeing an advance was British American Tobacco, up 1.5 percent to £13.70 on a “buy” recommendation from JP Morgan.
BSkyB was down 4.3 percent to 517½p as investors worried about the satellite broadcaster’s plan to spend £400 million on its new broadband offering.
The online gaming sector was hit hard by the news that a grand jury in the United States had field charges against BetOnSports. Traing in BetOnSports shares was suspended at 122½p. 888 Holdings dropped 12.7 percent to 168½p, while PartyGaming fell 17.2 percent to 85¼p, SportingBet declined 35.5 percent to 182p, and World Gaming was down 38 percent to 69½p.