The rush of merger and takeover-inspired buying of leading British stocks looked to have run out of steam for much of yesterday, with the FTSE 100 index only just managing to finish in positive territory after a choppy session. Footsie settled 1.2 higher at 6,264.1, having traded erratically and unconvincingly and with the prospect of a steep decline on Wall Street casting a shadow throughout the morning.

At its best, minutes after the start and again in mid-afternoon, the index posted a 25-points gain, only to run into pockets of profit-taking.

Unlike the leaders, the mid and smallcap stocks were never really troubled by sellers. Both the FTSE 250 and FTSE SmallCap indices were in positive ground all day, although they closed well below their best levels.

The 250 index ended 6.4 firmer at 5,475.8, having been up 13.3 at 5,482.7 at its best. The FTSE SmallCap closed 1.9 higher at 2,396.4.

Disappointed dealers in London said the market's failure to run on convincingly after three strong sessions stemmed from the warning issued by Coca Cola that its first-quarter sales were down in all markets outside North America.

That warning came on Monday, after the Dow Jones Industrial Average had closed above 10,000 for the first time and ensured a poor opening to the US session yesterday. The Dow posted a three figure loss in early dealings before rallying to recoup more than 50 points of its fall.

But market-makers insisted that London felt solid underneath and that selling pressure was never substantial.

Turnover was a hefty 1.17 billion.