Investors in booze, betting and cigarettes had their fingers burnt yesterday as updates from companies behind some of the finer things in life failed to impress the market.

Although first-quarter figures from SABMiller were not as bad as some had feared, a 1.6 per cent fall in like-for-like lager volumes, combined with a warning of challenging conditions in South Africa, were enough to discourage shareholders. The brewer of Miller Lite, Peroni Nastro Azzurro and Pilsner Urquell blamed the dip, compared with volume growth of 13 per cent last year, on a 5 per cent fall in volumes in China. However, with the country accounting for 30 per cent of group volumes, but less than 2 per cent of profits, the impact on the bottom line will be muted.

SAB also blamed the “moderation of consumer spending” in some markets. Volume falls in more profitable growth markets such as Colombia, down 4 per cent, and South Africa, down 3 per cent, are of most concern, although the company was up against tough comparatives. The shares fell 54p, or 4.9 per cent, to £10.49 as analysts voiced concern over the impact of slowing sales and rising costs.

First-half earnings from William Hill and Rank Group also disappointed, with the gaming companies reporting profit falls and mixed trading outlooks.

William Hill dropped 11¼p to 314½p after posting a 16 per cent fall in first-half underlying pretax profits, as more punters managed to beat the bookie. Charles Scott, the chairman, said the group had seen little evidence so far of the business suffering from the economic downturn, although the real test will come when the football season kicks off, with analysts noting that the rest of the year is likely to be more tough.

The fortunes of Rank Group did not fare much better even though the Mecca Bingo owner did beat the City’s worst fears. It posted a 53 per cent fall in interim pretax profit, hit by the smoking ban, new gaming laws and weaker consumer confidence. Despite giving warning that its trading environment remained challenging, Rank’s shares gained ½p to 75½p, as investors realised the company’s fourth-quarter comparatives were likely to improve after the anniversaries of bans on smoking and high-stakes machines.

British American Tobacco was also out of favour, down 38p to £18.28p, despite posting solid interim figures with no sign of customers trading down to cheaper cigarettes. But in Canada, the company’s Imperial Tobacco Canada unit was fined C$200 million (£98.5 million) and will have to pay C$400 million more over the next 15 years after admitting in court its role in smuggling operations.

The FTSE 100 closed down 8.8 points at 5,411.9 as investors digested a raft of earnings, with BT Group, down 23.7p to 173.9p, found to be disappointing, and HBOS, up 19¼p to 290½p, not as bad as feared.

In the 250 outsourcer, Xchanging rose 7¼p to 241½p after showing a 44 per cent rise in operating profit as companies seek to reduce costs in the economic downturn.

— New York:Blue-chip shares slipped after weak readings on US economic growth and the jobs market renewed concerns about the financial health of businesses and consumers. The Dow Jones industrial average closed down 205.70 points at 11,378.00.

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