Headline shares closed weaker today, the FTSE100 dropping back below the 6,000 level, as New York put in a mixed early performance ahead of tomorrow's interest rate decision.


At the close of play, the FTSE100 was down 64.1 points at 5,972.2 with the FTSE250 off 74.4 points at 9,855.5. The AIM100 continued to buck the negative trend, closing 8.8 points higher at 5,992.

Volume was firm with 2.67 billion shares changing hands in 298,826 deals.


Today’s look at individual Stocks:


Shares in Alliance & Leicester were a big afternoon feature, closing up 10p at 1,168p, recovering from earlier profit-taking declines amid market talk the UK mortgage bank turned down a takeover offer from France's Credit Agricole last week.


Diageo (the maker of Guinness) fell 3.5p to 905p after it informed investors it would pay an initial £100m as part of a new seven-year agreement to cover its £653m shortfall.


Rio Tinto shares fell 25p to 2,823p after Citigroup upgraded the shares to buy from hold, while target price rises failed to prevent BHP Billiton falling 7p to 1,014.5p. Xstrata eased 34p to 1,838p, while Antofagasta dipped 36p to 2,069p.


On the upside, shares of ITV were up 0.75p at 128.5p as investors digested a report in yesterday's Sunday Times which suggested private equity houses Apax Partners and Blackstone Group and investment bank Goldman Sachs are preparing another bid for the broadcaster, which will include a cash alternative.
In the mean time ITV's management team will this week meet shareholders to discuss giving them back more cash, while the private equity consortium, Apax Partners and Blackstone Group fight for control of the commercial broadcaster by considering offering a cash sweetener.


More upside came from a positive broker comment, which lifted Dana Petroleum, up 35.5p at 1,009.5p, as Merrill Lynch added the company to its 'Europe one' list of recommended stocks.


On the M&A front, Goldman Sachs confirmed on Monday that it was considering a bid for Associated British Ports in a consortium with Borealis Infrastructure Management. This morning's announcement followed a report in the London business daily City A.M. and led to a 4.5 per cent rise in AB Ports' share price to 727p in early trading.


Elsewhere on the markets, pension deficit concerns hit Cable & Wireless, which dropped 3p to 109.25p, after The Business reported that the troubled telecoms group is facing an increase of up to £300m in its pension deficit. The telecoms sector advanced overall.


FTSE 100 risers


Enterprise Inns 929-1/2 up 8

Alliance & Leicester 1,168 up 10
BSkyB 546-1/2 up 3-1/2

ITV 128-1/2 up 0-3/4
WPP Group 699 up 3-1/2


FTSE 100 fallers


Schroders NV 1,147 down 35

Cable & Wireless 109-1/4 down 3
Persimmon 1,344 down 34

Kazakhmys 952-1/2 down 24
Amvescap 555 down 12-1/2

Land Securities 1,948 down 41
BAE Systems 412-1/4 down 7-3/4

Cadbury Schweppes 574 down 10

Johnson, Matthey 1,438 down 17