Project management and services group Amec has lost 15.5p to 505.5p after a negative analyst note.
UBS downgraded its rating to neutral with a 550p price target, saying:
"Amec shares have substantially outperformed its peers since early October, thanks to its cash pile, continued positive commentary from management, and a defensive earnings mix. We believe that there is pressure to make acquisitions in the first half of 2009 to meet the 2010 margin target, and we remain concerned on risks to earnings."
Overall the London market has given a muted response to the US Federal Reserve's decision last night to slash interest rates to 0.25%, their lowest level ever.
The FTSE 100 has edged up 4.97 points to 4314.05 as traders hoped the move would help curtail the downturn in the US and give a pickup to the global economy. But some worried that the Fed had little left in its locker if the move does not have the desired effect. Chris Hossain at spread betters ODL Securities said:
"Last night's decision by the Fed to cut interest rates now poses as many questions as answers. Whilst it has provided the markets with an immediate boost, one is forced to wander what they can do next if this doesn't stimulate the economy? The lack of basis points to play with means we now turn to full blown quantative easing. Will this spur growth, or are we teetering on the abyss?
"Looking towards today's trading session, attention now turns to the Opec meeting. Having dropped $100 this year, expect to see a volatile session on the oil markets, with some commentators talking about a possible cut in output of up to 2million barrels per day."
Miners were among the main risers, as metals prices moved ahead slightly after the Fed action. Eurasian Natural Resources Corporation rose 13p to 341p while Xstrata added 21.5p to 713p despite an Australian court upholding an appeal against expansion at its McArthur River zinc mine. But Anglo American fell 19p to £15.56 as it announced it would halve capital expenditure next year to $4.5bn to conserve cash in the current troubled environment.
Private equity group 3i added 6.75p to 249.75p after two days of losses on worries about its trading performance, its debt and the falling value of its investments.
But HSBC, hit yesterday by talk from Asian analysts of a possible cash call, slipped another 24.25p to 690.75p despite UK commentators playing down the idea of a capital raising.
