FTSE: 5,929.73 (+4.47) Mid-250: 11,788.92 (+2.73) Small Cap: 3,291.23 (+12.33)LONDON'S LEADING index shrugged off a weak start on Wall Street and sluggish UK growth to close slightly higher.

Oil giant BP posted one of the biggest falls of the day after the company reported lower-than-expected quarterly profits and a plunge in production.

The British firm said clean replacement cost profits in the three months to June were $5.3 billion (£3.2 billion), short of City forecasts of $6 billion, while production dropped by 11 per cent. Shares fell more than 2 per cent or 12.2p to 463.3p.

The market was unshaken by UK economic growth figures, which revealed GDP grew at 0.2 per cent in the second quarter.

However, EU debt concerns continued to trouble investors after disappointing Italian and Spanish bond auctions followed yesterday’s debt downgrade for Greece by ratings agency Moody’s.

Banks continued to come under pressure as a result. Barclays dropped 0.2p to 228.8p and Royal Bank of Scotland was down 0.1p at 36.2p, although Lloyds Banking Group rose 0.1p at 45.2p

Despite the pressure on BP, shares in BG Group shot up 4 per cent or 61.5p to 1486.5p after it outshone its rival with second-quarter figures above market hopes.

Set-top box manufacturer Pace jumped 8 per cent or 8.7p to 113.7p after it reported a drop in profits but said it remained on track to meet guidance for the financial year.

Tour operator Holidaybreak jumped another 12 per cent or 44.5p to 411.5p as it revealed upmarket rival Cox Kings had tabled a potential takeover offer for the firm. The Mumbai-listed firm, which dates back to 1758, is in talks with Holidaybreak’s board after proposing 432.1p a share for the Cheshire-based company, valuing the business at just over £300 million.

Elsewhere, Cranswick, a major supplier of pork to UK supermarkets, saw shares tumble 15 per cent after it warned its annual profits would be lower than expected as it battles with soaring pig-feed prices. Shares dropped 110.5p at 629p.

The biggest FTSE risers were BG up 61.5p at 1486.5p, Vodafone ahead 3p at 165p, ENRC up 10.5p at 791.5p, and IMI ahead 13p at 1099p.

The biggest fallers were Arm Holdings down 20.5p at 595.5p, Burberry off 51p at 1549p, GKN down 7.2p at 231p, and Man Group off 6.2p at 233.9p. – (PA)