FTSE hits another four year high
The firm behind London’s congestion charge scheme led the FTSE 100 Index to another four-year high today.
Shares in Capita bounced 3% or 12p to 405.75p after the company said its results for this year should be “pleasing” due to strong trading, while there were also solid gains for mining stocks and supermarkets.
This ensured the Footsie closed 8.1 points higher at 5547.9 as analysts turned their attention to how members of the Bank of England’s Monetary Policy Committee voted at their meeting to set interest rates earlier this month.
The outcome will be known tomorrow and CMC Markets trader Paul Webb said: “Any suggestion that the next move for UK rates may be downward could well be sufficient to inject a little more life into the market ahead of the long weekend.”
Supermarket chains Morrisons and Sainsbury’s featured near to the top of the blue-chip leaders board, while Xstrata led mining stocks higher with a 25p gain to 1346p.
Sainsbury’s advanced 3.5p to 312.5p, while Morrisons was ahead by 2.5p to 189.5p after exchanging contracts with Somerfield to sell a number of former Safeway stores now trading under the Morrisons name.
Pest control group Rentokil Initial moved 1% ahead after yesterday unveiling plans to close its final salary pension scheme to current members in a bid to tackle its £349m (€516m) deficit. The stock rose 0.75p to 164p.
Financial services firm Old Mutual cheered 1.75p to 158p as it won control of Skandia following a multi-billion pound hostile takeover battle.
But brick maker Hanson proved to be a restraining influence on the London market as it warned low demand in the UK and ongoing energy costs could hit business next year.
Shares in Hanson dropped 6.5p to 616.5p to be the sixth heaviest faller, while aerospace group BAE Systems lost 2.5p to 347.75p after it was downgraded from “buy” to “neutral” by broker Merrill Lynch.
Chemicals firm ICI also felt the chill of a broker downgrade, weakening 1.25p to 329.75p after Citigroup moved it from “hold” to “sell” amid concerns over pensions liabilities.
B&Q owner Kingfisher was in negative territory after chairman Sir Francis Mackay announced his retirement.
City broker Seymour Pierce said Sir Francis’ tenure “can hardly be regarded as a success” and predicted further changes in personnel following the appointment of Peter Jackson as his successor. Shares fell 1.75p to 233.25p.
Outside the top flight, outdoor advertising firm Maiden slumped 7% as it revealed it was examining its future options after a string of setbacks put it in breach of its banking covenants.
Maiden said it was staring at an operating loss this year after sales fell “significantly short of expectations” in November and December, sending shares 5.5p lower to 76p.
The biggest blue chip risers were Capita Group up 12p to 405.75p, Xstrata ahead 25p to 1346p, Carnival up 57p at 3240p and Severn Trent ahead by 18p to 1053p.
The heaviest fallers were PartyGaming down 3p to 137p, SABMiller off 15p to 1028p, AstraZeneca down 40p to 2790p and BAA off 8p to 636p.
