FTSE in positive territory
Chemicals giant ICI kept the FTSE 100 Index in positive territory today as investors welcomed a better-than-expected set of results.
Solid updates from sugar and starch manufacturer Tate & Lyle and pest control-to-hygiene firm Rentokil Initial also buoyed the London market.
And overnight gains on Wall Street gave further encouragement to the Footsie, which rose 36 points to 5394.6 by mid-morning.
ICI was top of the leader board as shares surged 7% or 21p to 315p on the news that its profits and sales had grown faster than the City expected over the summer.
Tate & Lyle followed it upwards as it posted a forecast-busting 7% rise in first-half profits to £136m (€200m) and said its full-year results should be satisfactory in spite of rising costs.
And there was much-needed good news for investors in Rentokil Initial, whose shares were up 5% or 6.75p to 156.75p despite revealing a £10m (€14.7m) bill after successfully fighting off an approach from former Granada boss Sir Gerry Robinson.
Third-quarter results at Rentokil were more upbeat than the City expected with a 5.3% growth in revenues and a slower rate of decline in profits.
But there was little sign that Unilever is turning around its business in Europe, with sales falling 2% in the region during the third quarter after the consumer products giant cut the prices of its products to defend market share.
Unilever was the morning’s biggest loser among elite stocks – down 5% or 28.5p at 552p.
News of a planned takeover of online gaming firm Empire Online by its bigger rival PartyGaming was met with a mixed reaction by traders.
Shares in poker giant PartyGaming fell half a penny to 92.5p, while Empire Online cheered 4% or 4.5p to 120p.
