City news.

The London market paused for breath today after seeing the FTSE 100 Index hit a new six-year high at the end of last week.

A round of profit taking by investors caused the Footsie to slip, but it soon recovered.

Medical devices group Smith & Nephew led the risers board with a gain of 23.25p to 505.75p, while BP was up 4p at 584p and British Gas owner Centrica lifted 2p to 342.5p, following last Friday's trading update.

One of the most significant announcements of the session came from BT after it said it would speed up payments in order to remove a pounds 3.4bn deficit in its pension fund. With BT planning a pounds 500m contribution by the end of this month, shares were off 5.5p at 309.5p.

Outside of the top flight, construction group Costain dived 23% after it said its building division continued to under-perform and that recent contract disputes would lead it to an accounting write-down.

With the group expected to be in breach of banking covenants, shares dived 14.25p to 50p. It added that it was unlikely to pay a full-year dividend.