IHG's gains falter as FTSE holds up InterContinental Hotels was among the biggest losers on the FTSE 100 on Tuesday after the group's profit report did not extend a strong run for the stock. The operator of the Crowne Plaza and Staybridge Suites brands reported annual profits of $614m, up 11 per cent and ahead of forecasts of $605m. There was no mention in the company's results of plans to make a special capital return to investors, scotching recent hopes that landmark hotels could be sold and the proceeds paid back to investors. It did, however, increase its final dividend by 16 per cent to to $0.64. The shares fell 2.6 per cent to £19.36, after a 14.5 per cent rally since the start of the calendar year, up 30 per cent over the past three months. "The rally has closed the gap to our share price target, and the valuation of its US peer group," said James Hollins, analyst at Investec, who cut his rating on the stock from "buy" to "hold." We think parity with its US peers is fair and that IHG remains a core sector holding, particularly given our unchanged view that a further $1bn of cash shareholder returns is likely in the next 12 months, depending on the sale of the London and New York InterContinental Hotels - this remains an ongoing process. However, the rating and recent share run drive our [rating] move," said Mr Hollins. Vodafone was the only stock under more pressure on the main London index, falling 2.7 per cent to 163.4p after analysts at Bernstein cut its rating on the widely held shares from "market-perform" to "underperform." It also reduced its price target on the stock from 170p to 135p. Fund manager Standard Chartered made the best single gain, rising 3.1 per cent to £17.83, after upbeat comment from Morgan Stanley. The broker said it now preferred StanChart over HSBC as its favourite UK bank with significant exposure to Asian markets, partly due to a more favourable valuation for its shares after their recent underperformance of the FTSE 100. Overall, London's main index was 22 points higher at 6,340.30, a rise of 0.4 per cent. The gains were led by oil stocks at sector level, with much of the rest of the support coming from defensives as traders looked for protection for gains made during the new year rally. Mike van Dulken, head of research at Accendo Markets, said: "The FTSE 100 is still holding 6,300 but any attempts at rebound have become increasingly weak. Some of that is linked to US [markets] being closed yesterday, but caution looks to be growing. There is still potential for a break to the downside, and 6,220 is the next level of likely support. In the meantime, Royal Dutch Shell rose 0.6 per cent to £21.22. Among defensives, Compass Group, the contract caterer, was 0.9 per cent higher at 790p. Medical devices maker Smith & Nephew was 1 per cent higher at 701p.