BSkyB slides as trio of brokers turn cautious Citigroup completed the triptych, with its downgrade from "neutral" in a review of the European media sector. Although the broker expects "very solid earnings growth over the short to medium term," it too was worried about the Premier League auction and the advance of Netflix. But, analysts at Goldman Sachs were more sanguine. Keeping their "buy" rating on BSkyB, they argued that concerns over the Premier League auction were overdone and that the Netflix launch is "likely to only have a limited impact on the market." Although the broker said it expected second-quarter results to show strong profit and margin growth, BSkyB fell 10½ to 697½p. Elsewhere in the media sector, however, WPP advanced 16 to 732½p as UBS upped its rating on the advertising group to "buy." Broadcaster ITV, which was lifted by resumed takeover tittle-tattle earlier this week, eased 0.7 to 73.05p as Citi analysts suggested that it could merge with a broadband provider. But while they argued that there was some logic to such a move, they ascribed just a "low-to-medium" likelihood of it taking place. ITV and BSkyB's descent was reflected by the benchmark index as a whole. Having earlier shown relief that a Spanish bond auction had passed off smoothly, the index was later disappointed by weak US jobless and retail data, sending the FTSE 100 down 8.4 points to 5662.42. However, the FTSE 250 climbed 93.89 points to 10466.45. A disappointing fall in Christmas sales at Tesco and the supermarket giant's first profit warning in living memory cast a pall over the high street, with a raft of retailers beating hasty retreats. Tesco itself was the worst casualty, tumbling 61.55 to 323.45p. Rival supermarkets J Sainsbury and Wm Morrison slid 16.2 to 285.9p and 18.1 to 285.9p respectively. Marks & Spencer lost 6½ to 315.6p. It was a similar tale in the second tier, where Home Retail Group lost 4.25 to 83p as sales slid at its Argos chain. But at the opposite end of the scale, Ocado soared 18.55 to 74p as investors applauded its 16pc rise in Christmas sales. Back among the blue-chips, while retailers dominated proceedings, Reckitt Benckiser also suffered a slide. Having been lifted by analyst optimism on Thursday, the maker of Mr Sheen was tarnished by a downgrade from JP Morgan Cazenove. "It ain't broke, but needs to improve," said analysts. They expect muted margins ahead as the company's new management prioritises top-line recovery, and cut their rating to "neutral." Propping up the index were the banks and other financials. Having outlined plans to cut 3,500 jobs as it reduces its investment bank, Royal Bank of Scotland climbed 1.21 to 23p. Lloyds Banking Group put on 0.98 to 29.15p. Commenting on RBS's plans, Bruce Packard, a Seymour Pierce analyst, said: "We see [the] announcement as a response to both market conditions and new ring-fencing proposals." Insurers were on the ascendant too, with Admiral sailing up 27p to 871½p. Fund manager Ashmore advanced 14.9 to 340.8p as it reported a small rise in assets in the fourth quarter. Miners also helped limit the large-caps" losses, with Vedanta Resources 48p higher at £10.64. In the second tier, SIG was in demand as the building products group said it expected annual profits to overshoot expectations thanks to mild winter weather helping construction activity. SIG, which supplies insulation, roofing and construction materials, jumped 10 to 101.6p. Rentokil inched up ½p to 70.9p as more analysts turned positive on the rat-catching to parcel-delivery group. After Credit Suisse and Goldman Sachs pushed Rentokil, Espirito Santo added that "successive setbacks to an expected turnaround have eroded investors" confidence, under-rating the steady progress being made by management." Cape recovers on growth in activity Energy services company Cape jumped 27.3 to 388.3p, fuelled by upbeat prospects for the coming year. Cape, which provides services such as insulation and painting to plant operators in industries including oil and gas, pointed to progress at liquefied natural gas projects in Australia and Algeria. The FTSE 250 company added that it had seen "strong revenue growth" in the fourth quarter of the year and expected its 2011 results to meet its estimates. Cape's update reassured the City after the company's shares took a tumble in November when it warned that third-quarter margins were likely to be hurt by a slow release of work on secured contracts. Collins Stewart said the issues raised in November seemed to now be behind it.