FTSE moving closer to 6,000 mark
The FTSE 100 Index continued its march towards the 6,000 mark today as investors jostled for position in the hope of further takeover activity.
Building products firm Hanson and medical devices maker Smith & Nephew were the latest firms in focus as bid rumours swirled around the City.
And with the markets taking further heart from strong gains on Wall Street overnight, the Footsie moved up 27.2 points to 5977.8. It has not gone above 6,000 since March 2001.
Hanson was the Footsie’s strongest riser as the market’s recent round of takeover speculation switched to a possible approach from Lafarge.
Shares were up 10% before settling to stand 5% higher, up 40.5p at 781.5p, although there were other reports that Hanson may be considering a break-up of its business.
Smith & Nephew was another strong riser, up 4% or 18.5p to 546.5p, as rumours looked towards a possible bid for the medical devices group.
And in the FTSE 250 Index, Comet owner Kesa Electricals backed up last night’s rise of 11% with a gain of 2% or 6p to 331p after it turned down a £1.72 billion offer from private equity suitors yesterday.
But the London Stock Exchange – which grabbed the headlines earlier in the week as its share price surged 30% following the rejection of a bid from US rival Nasdaq – slipped 3% or 30p to 1160p today.
Elsewhere, Game Group fell 4% or 3.25p to 78.25p after a delay in the launch of the latest Sony PlayStation, which Game will now not get into its shops until November.
Back in the top flight, Cairn Energy added to the strong gains seen yesterday following strong results and a plan to part-float its Indian business. Shares were up 66p at 2129p.
