The FTSE 100 Index has remained in negative territory after drawing little encouragement from the Bank of England's interest rate cut.
The Footsie was down 25.6 points at 4029.1 by lunchtime as investors pondered the implications of the surprise reduction to 3.5%. While the cut could boost growth prospects, there was also concern about the message that the move sent on the state of the UK economy.
Even the launch of London's biggest flotation in two years failed to inspire the market out of its current lacklustre mood.
Conditional dealings in directories business Yell began at 8am, with traders initially pricing the stock as high as 305p - far greater than the start point of 285p. But by lunchtime the subdued mood had taken its toll with Yell drifting back to 292.25p.
Wall Street was also a factor in the difficult trading with the Dow Jones Industrial Average expected to open lower after dropping 67 points yesterday.
The main gains of the day were for pharmaceuticals groups after AstraZeneca's cholesterol lowering drug Crestor received the backing of a key US Food and Drugs Administration committee. Shares were up 3% or 78p at 2533p by lunchtime while rival Shire Pharmaceuticals was up 15.5p at 398.5p.
Traffic figures from BAA showing a continued recovery from the impact of Sars lifted the airports operator 7.75p to 498.75p. However, building materials distributor Wolseley eased 21.75p to 678.5p after warning that full-year results would be affected by currency movements.
Engines group Rolls-Royce also eased 5p to 141p to top the Footsie fallers board. Outside the top flight, bookmaker Stanley Leisure found the going tough - off 7p at 329.5p - after it said its London casinos had suffered a run of bad results. Rival William Hill was caught in the sell-off, slipping 6.75p to 298.25p.
Building services group Carillion saw the biggest drop on the FTSE 250 Index after warning that cost over-runs on the high-profile Nottingham Express Transit project would hit first half profits in its construction services arm. Shares were down 8% or 15p at 161.5p.
Fellow construction companies WS Atkins and Balfour Beatty also fell, easing 13p and 6.5p to 287.5p and 184p respectively. Meanwhile, takeover speculation lifted Durex condom maker and Scholl footwear company SSL to the top of the FTSE 250 leaders board. The stock rose 7% or 18.5p to 296p.