FTSE on front foot
The London market was on the front foot today as investors welcomed developments at Vodafone, BAA and the London Stock Exchange.
The FTSE 100 Index continued its rise towards the 6,000 mark while mid-cap stocks were inspired by a 28% rise by the LSE.
The excitement helped push the Footsie 30.2 points higher to 5938.1 by mid-morning, as the market remained at levels last seen in the middle of 2001.
LSE grabbed the headlines as investors reacted to Friday’s announcement that it had rejected an offer from Nasdaq. Shares soared 246p to 1126p – well above the proposed price of 950p offered by the New York-based exchange and more than twice its level a year ago.
MyTravel was also in good form in the FTSE 250 Index with gains of 6% or 13p to 233p after it continued its recovery despite rising fuel bills.
But Northern Foods took a hammering – down 19% or 24.75p to 105.25p – on the back of its second profits warning in two months. The Fox’s biscuits and Goodfella’s pizza business blamed a shift towards healthier eating for its demise.
Back in the top flight of blue chip stocks, Vodafone ticked 4p higher to 128.75p as investors cheered attempts by key figures at the group to rally behind under-pressure chief executive Arun Sarin. There were also encouraging reports of a possible bidding war for the company’s Japanese operation.
The mobile phone company was joined by BAA – up 22p at 836p – after it was reported that Australian bank Macquarie was mulling an offer to rival interest from Spanish firm Ferrovial.
But both stocks were beaten to the top of the leader board by InterContinental Hotels after Morgan Stanley improved its rating of the stock. Shares lifted 4% or 32p to 867.5p.
