FTSE holds fast
The London market held its own above the 4800 level today following positive corporate and economic news in New York.
The FTSE 100 Index ended the session 11.5 points ahead at 4801.7, above its mid-week low of 4789.4 but still well short of this week’s starting point of 4849.
The London market got a late boost from Microsoft’s announcement on Wall Street that sales next year may beat estimates.
There was further good news in the form of a US government report showing personal spending and incomes had increased more than expected. The Dow rallied 12 points on the news in early trading.
Back in London, news that consumer borrowing appears to be on the increase once again failed to deter investors – although one trader said there may be concern that this paved the way for the Bank of England to hike interest rates later in the summer.
A consumer confidence survey provided cause for uncertainty, saying perceptions of the UK’s general economic situation in the year ahead had fallen.
Oil giants Shell and BP both added around 1% to their value, lifting 3p and 1.5p to 469.5p and 534p respectively as they continued to benefit from upbeat results earlier in the week.
Miners were among the highest climbers as they rebounded from a poor performance yesterday on the back of downbeat production figures from BHP Billiton. BHP was fourth on the Footsie risers board today – lifting 15p to 639p - while rival Anglo American was second in the list with a 31p addition to 1161p and Rio Tinto cheered 24p to 1581p. Xstrata was up 13p at 902p.
Corporate news was thin on the ground today at the end of a hectic week for blue-chip firms.
Publishing group Pearson provided the main focus in the top flight after its AGM statement highlighted a sharp rebound for its US textbook market and pointed to a recovery for its Penguin books business. Shares were 4.5p higher at 635p.
In the second tier, shares in pubs chain JD Wetherspoon were nearly 3% or 7p stronger at 250p, despite the company reporting continued tough trading conditions and a 2% fall in third quarter like-for-like sales.
Magazine publisher Highbury House Communications plunged nearly a third after rival Future unveiled a £30.5m (€45.1m) deal to buy a string of titles just two weeks after pulling its offer for the whole firm.
Shares fell 1.38p to 2.87p as analysts said the move would make it harder for the group to find another buyer.
And life continued to be tough for Marconi following the telecoms equipment group’s failure to land any work from a flagship BT contract.
The shares plummeted 38% on the news yesterday and were down by another 12% or 36.5p at 261.5p today.
Biggest risers included British Land up 25p to 818p, Anglo American gaining 31p to 1161p, Tate & Lyle adding 11.5p to 465p and BHP Billiton advancing 15p to 639p.
Largest fallers were Scottish & Newcastle, down 9.5p to 453.25p, Wolseley losing 15p to 1048p, Johnson Matthey off 13p at 915p and International Power shedding 2.5p to 182.25p.
