Lloyds bid speculation helps FTSE
Bid speculation surrounding banking group Lloyds TSB helped the FTSE 100 Index break through a key milestone today.
Lloyds TSB saw its market value rise by 8% after more reports linked it with potential suitors in the United States and Europe, lifting a series of stocks in the banking sector.
This helped the Footsie rise 40.6 to 5800.9 by mid-morning. The index last closed above the 5800 mark in June 2001.
Lloyds, the UK’s fifth largest bank, was the highest blue-chip riser with gains of 40p to 549.5p amid heavy trading of its stock. It was followed by larger rival Barclays – up more than 3% or 21p to 622p – while Northern Rock cheered 23.5p to 1064.5p.
Satellite broadcaster BSkyB also provided momentum after reporting its best subscriber growth in three years. Shares in BSkyB rose 9p to 495p as investors applauded a 14% rise in first-half profits and news that it had slowed the level of churn – the proportion of customers leaving for rival services.
Drugs giant AstraZeneca added 1% to its market value – up 29p to 2751p – ahead of its annual results tomorrow which many analysts believe will signal a change in strategy as it seeks to overcome its dearth of drugs in development.
Analysts think the new boss of AstraZeneca will focus on acquiring smaller companies or signing more licensing deals. Major rival GlaxoSmithKline was also ahead – up 7p at 1445p.
But the sight of oil prices falling for the second day in a row put BP and Shell under pressure – off 1.5p and 5p to 674.5p and 2011p respectively.
Outside the top flight, strong demand for “iconic” gadgets such as iPod music players helped chipmaker Wolfson Microelectronics post a 156% increase in annual profits, lifting its shares 6.25p to 410p.
