FTSE atones for yesterday's losses
Bid speculation drove the FTSE 100 Index higher today as investors eyed possible developments at BT, Cairn Energy and airports operator BAA.
The top flight index put back losses seen yesterday to stand 23.7 points higher at 5856.7 by mid-morning.
The progress was in contrast to major markets around the world with the Dow Jones Industrial Average in New York, Japan’s Nikkei and the Hang Seng index in Hong Kong all closing in the red.
BT lifted 4% after a newspaper report said a private equity firm had cast an eye over the company in a potential deal worth £20bn (€29bn).
Hurdles such as financing and BT’s pension deficit meant the interest came to nothing, but this failed to prevent shares from rising 9p to 217p and lifting the value of holdings owned by around 1.5 million small shareholders.
Carin Energy was also benefiting from speculation as reports circulated of interest from India’s Oil & Gas Corp in the group’s Indian assets. Shares jumped 4% or 82p to 2042p.
And investors anticipating an approach for airports operator BAA kept its shares bubbling – 4% or 31.5p to 839p – with reports in Spain suggesting infrastructure giant Ferrovial was in the home stretch of finalising a bid.
Marks & Spencer also rose after it emerged the company was preparing to squeeze suppliers by asking for further discounts in order to pay for its ongoing advertising and marketing campaign. Shares were more than 1% higher, up 8p at 528.5p.
Three companies that reported results today dominated the FTSE 250 fallers board, with Rank Group sliding 12p to 234.5p after reporting delays in selling its Deluxe Media arm. Avis Europe failed to benefit from restructuring efforts - down 2p to 77.75p – while JD Wetherspoon eased 10.5p to 347p as it said the full implementation of its smoking ban would be delayed.
