Strong start for FTSE
The London market made a strong start to the week today as investors welcomed the completion of the Iraq election and cheered a fall in oil prices.
Possible takeover activity and a strong trading update from Ryanair added to the upbeat mood as the FTSE 100 Index enjoyed one of its best openings to a session for some time – up 32 points at 4864.8 by mid-morning.
Only a handful of stocks were in negative territory, with the cheaper price of crude oil and better-than-expected third quarter figures from Dublin-based carrier Ryanair helping lift British Airways near the top of the risers board.
BA gained 3% or 7.25p to 267.25p while FTSE 250 Index stock easyJet cheered by more than 4%, up 9p to 224.25p. With its own full-year forecasts being raised, Ryanair shares lifted by 8%, or 0.49 euros to 6.36 euros.
Most of the key developments were to be found in the second tier after telecoms equipment group Marconi announced a strategic partnership and high street retailer Woolworths received news of possible takeover interest.
Woolies was up 6% early on, but then shot ahead by 18% – or 7.25p to 47.75p - after private equity group Apax confirmed weekend reports that it was considering making a bid. A tie-up with Chinese company Huawei helped Marconi shares to lift 7% or 43p to 638p.
Manchester United was among other stocks on the FTSE 250 risers board, lifting 11p to 265p following a weekend of speculation over the possibility of further bid interest from US sports tycoon Malcolm Glazer.
Elsewhere, support services group Jarvis surged 21% or 5.75p to 33.5p, following the extension of banking facilities until March 2006. That was after the company said it had successfully secured the future funding of 14 outstanding construction contracts.
