FTSE's week off to positive start
The FTSE 100 Index travelled in positive territory today as investors in drugs stocks took heart from a US rival triumphing in a patent dispute.
AstraZeneca and GlaxoSmithKline occupied the top two spots on the Footsie risers board after judges across the Atlantic upheld the exclusivity of two patents held by Pfizer.
With triple-digit gains by the Nikkei in Japan and the Hang Seng index in Hong Kong adding to the upbeat mood, the Footsie gained 3.7 points to stand at 5535.3 by mid-morning.
The patent dispute in the US related to the active ingredient used in one of Pfizer’s cholesterol-reducing products and shares in AstraZeneca benefited most - up 67p to 2814p – as the company is already heavily involved in this area of medicine.
GlaxoSmithKline progressed 27p to 1487p and the ruling also helped to boost Shire, which ticked 4p higher to 729.5p.
The gains helped to pare disappointment at lower oil stocks and the decision by consumer products firm Unilever to keep its dual-listed structure.
Unilever was the session’s biggest loser – off 10p to 572.5p – after bosses said alternatives to its current set-up offered no compelling benefits.
Oil giants BP and Royal Dutch Shell fell 5p and 13p to 619p and 1827p respectively after the cost of crude fell more heavily on Friday than at any time over the past three months.
Elsewhere, investors liked the double deal announced by Carphone Warehouse today that will expand its TalkTalk fixed-line business. Carphone shares rose 7% or 16.25p to 256.25p after buying Onetel from Centrica, which was a penny lower at 242.5p.
Crash test dummy maker First Technology leapt 26% or 57.5p to 280p after receiving a firm offer from US giant Honeywell, with traders speculating that a rival bid may follow.
Dairy Crest, the maker of Cathedral City and Country Life butter, was also the subject of bid speculation as its shares rocketed 10% or 46.5p to 529p even though it has not been formally approached by any party.
