Footsie continues to rally
The FTSE 100 Index extended a recent rally today to start the second half of the year on a positive footing.
With just a handful of blue-chips slipping into the red, the top flight built on its run of good gains to close 47.8 points higher at 5161.
The fourth consecutive session of gains meant the Footsie racked up around 80 points over the course of the week.
Rolls-Royce topped the risers board as investors ploughed cash into shares at the start of the second half. The stock added 3% or 8.75p to 296p after saying the civil engine fleet would increase by 40% over the next five years.
Banking stocks were higher 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 35 billion US dollars (£19.5bn) for MBNA.
Shares in Standard Chartered were 22p stronger at 1042p in the wake of the MBNA deal, with Barclays up 6.5p at 562p and Lloyds TSB gaining 5p to 478p.
Drinks giant Allied Domecq was another riser – up nearly 1% or 6p at 681p - after its £7.4 billion 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 13p to 594p, while Shell rose 10.25p to 553p and BG Group leapt 13.5p to 472.5p.
Trading across the Atlantic injected further momentum into stocks here with the Dow Jones Industrial Average standing around 40 points higher by the time the London market closed.
In contrast, telecoms stocks were among just eight blue-chips heading in the other direction. O2 was the heaviest faller as profit-takers moved in after its recent denial it was in takeover talks. It was followed by rival Cable & Wireless after a downbeat broker note. The pair lost 2.25p and 0.75p to 134p and 148.25p respectively.
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 8% or 22p to 245p.
Housebuilder Redrow rose 12p to 428p on expectations that it will better last year’s annual profits haul in a stagnating market.
Broadband firm Easynet advanced 7% as it unveiled plans to significantly expand its network in the wake of regulatory moves by Ofcom. Shares lifted 5.5p to 80p.
The highest Footsie risers today were Rolls-Royce up 8.75p to 296p, BG Group rising 13.5p to 472.5p, Yell Group adding 12.5p to 437.75p and BOC up 29p to 1033p.
The heaviest fallers were O2 down 2.25p to 134p, Royal & Sun Alliance off 0.75p to 83p, Reckitt Benckiser losing 12p to 1633p and Rentokil Initial down 1p to 158.75p.
