Expectations prove too much for Abbey National

The run of well-received results from the banks, which has been such a positive influence on London's equity market, ended yesterday. With other pressures affecting London, included the expiry of the February series of FTSE index options and the lowering of the offer price for the forthcoming flotation of William Hill, the bookmaking firm, blue-chip stocks struggled to make progress.

At the close, the FTSE 100 index was left nursing a 43.7 decline at 6,031.2, its third successive retreat. Over the week, however, the index showed an 80.5, or 1.3 per cent gain, fuelled by the gains in two of the market's most heavily weighted sectors, banks and telecoms.

Yesterday, however, Abbey National shares plummeted over 6 per cent despite highly respectable numbers and a 15 per cent increase in the dividend total; "good but not enough", was the view of one market-maker.

Outside the leaders, the rest of the market enjoyed a relatively comfortable session. The FTSE 250 never looked like relinquishing good early gains and settled 19.2 higher at 5,173.1.

Similarly, the FTSE SmallCap, maintained a sedate but always positive stance, closing 2.7 firmer at 2,249.1.

Over the week the smallcap outpaced the midcap, posting a 12.1, or 0.05 per cent gain, compared with the 14.76 or 0.3 per cent decline in the FTSE 250 index.