Banking stocks spur FTSE
Banking stocks were higher in London today as a takeover deal for US credit card firm MBNA spurred speculation of further consolidation in the sector.
Standard Chartered and Barclays led the way for financial stocks after Bank of America revealed last night that it was paying $35bn (£19.5bn/€29bn) for MBNA.
With oil and mining stocks also attracting investors, the FTSE 100 Index confidently pursued a fourth straight session of gains and stood 35.2 points higher at 5148.4 by mid-morning.
The positive showing was in spite of the Dow Jones Industrial Average closing nearly 100 points adrift last night.
Shares in Standard Chartered was 14p stronger at 1034p to lead the financial sector higher in the wake of the MBNA deal, with Barclays up 6.5p at 562p and Lloyds TSB gaining 5.25p to 478.25p.
Drinks giant Allied Domecq featured prominently among the risers – up 8.5p at 683.5p – after its £7.4bn (€11bn) takeover by French rival Pernod Ricard was cleared by US authorities.
Progress by the Footsie was also being underpinned by BP – the UK’s largest quoted company – on a good day for companies in the exploration business. BP ticked up 6.5p to 587.5p while Shell rose 7.75p to 550.5p, BG Group leapt 5.25p at 464.25p and miner Rio Tinto advanced 11p to 1719p.
But interest in telecoms stocks began to wane after a bright opening. Mobile phone operator Vodafone was only 0.25p ahead at 136.25p on a day when rival O2 slipped 2p to 134.5p.
Clothing chain French Connection was a heavy faller outside the top flight after warning that its profits could be 40% lower than last year. Its shares fell 10% or 27p to 240p.
Housebuilder Redrow rose 2p to 418p on expectations that it will better last year’s annual profits haul in a stagnating market.
