FTSE lifts in morning trade
The FTSE 100 Index kicked on this morning despite a negative response in the market to results from British Airways and BSkyB.
Investors displayed no willingness to bank profits in the wake of gains of 73 points yesterday as the Footsie targeted a sixth consecutive session in positive territory.
Progress on Wall Street overnight and the sight of Japan’s Nikkei Index climbing above the 14000 threshold for the first time in four years were underpinning sentiment as the Footsie lifted 6.7 points to 5438.6 by mid-morning.
Shares in BSkyB fell 7% or 35.5p to 491.5p after the satellite broadcaster revealed that summer price hikes had persuaded many of its customers not to renew subscriptions.
British Airways was also on the way down – off 7.75p at 306p – after it posted flat profits for the first six months of its financial year. Shares in BA have enjoyed a strong run recently.
But concerns about the strength of its major markets in western Europe, including the UK, were not putting investors off brewer Scottish & Newcastle.
Instead, they latched on to news that volumes between July and September improved throughout all regions as S&N shares advanced 5.75p to 484.25p.
Other risers included fund maager Amvescap – 4% or 13.75p at 390p – as US competitor Janus was touted by traders as a potential bidder.
Insurance firm Legal & General lifted 2p to 110.75p to be the session’s second-highest riser as investors expressed relief that draft tax legislation would have no impact on its profits. L&G had previously thought the rule changes could inflict a one-off hit of £500m (€739m).
Outside the top flight, baker Greggs dropped 6% or 286p to 4594p after warning that recent trading had been affected by fewer shoppers venturing on to high streets around the UK.
Software group Autonomy was heading in the other direction, surging 14% or 43.75p to 364p on its transforming $500m (€418m/£283.2m) deal to buy US rival Verity.
