FTSE surges ahead
London shares surged ahead today as traders expressed relief that Hurricane Rita caused less damage than originally feared.
The FTSE 100 Index hit a new four-year high as it took its lead from other European markets, climbing 31.9 points to 5445.5 by mid-morning.
Insurers were among those to benefit from the upbeat momentum after the hurricane missed the centre of Houston and inflicted only minor damage on petrol plants.
Friends Provident advanced 2%, up 3.75p to 184.75p, while Legal & General cheered 1.75p to 111.5p.
However, the biggest gains came from miners, with BHP Billiton advancing 21.5p to 882p after a positive note on the sector from Merrill Lynch. Rival Rio Tinto was behind it at the top of the Footsie risers board, adding 53p to 2222p, while Antofagasta cheered 35p to 1537p.
Telecoms giant O2 also made progress as it benefited from an upbeat note from broker ABN Amro and continued takeover speculation, helping lift shares a penny to 156.5p.
Oil firms were among the few stocks in negative territory as the cost of a barrel of crude oil fell below 64 US dollars in New York. Cairn Energy was the hardest-hit, off 35p at 1965p while larger rival BP weakened 7p to 655p and Royal Dutch Shell lost 9p to 1905p.
Much of today’s corporate news came from outside the top flight, with retailer Alexon losing 15.5p to 260p after its Dolcis shoe chain fell victim to competition from clothing stores.
Whitbred, the owner of hotel group Premier Travel Inn and David Lloyd Leisure health clubs, saw its shares rise after announcing a corporate restructuring that will lead to job cuts at its head office. Shares added 6p to 953p.
However, news that Build Center chain Wolseley bucked the tough trading conditions in the UK with an 11% rise in profits failed to lift its shares, which retreated 13p to 1161p.
