Footsie continues to gain ground
Takeover talk and oil stocks helped the London market to notch up healthy gains today.
The FTSE 100 Index rose 23.3 points to 5184.3 – its fifth consecutive day of progress – after bid speculation sent broadcaster ITV soaring to second in the Footsie risers.
Oil heavyweights BP and Shell also advanced strongly as investors continued to cheer the high price of crude and the prospect of good numbers in a trading update from BP.
The gains left the Footsie within striking distance of the 5200 mark for the first time in more than three years.
There was no impetus expected from the United States, where Wall Street was closed for a public holiday.
BP ended the day at the top of the Footsie risers with a gain of nearly 4% or 23p to 617p following an upbeat note from broker Smith Barney, while Shell was fourth in the list after adding 10.25p to 563.25p.
Investors were expecting BP to report strong refining margins and production numbers in tomorrow’s trading update as it benefits from high oil prices.
The price of US light crude remains above 58 US dollars a barrel while a barrel of Brent lifted further above 57 dollars today.
ITV advanced 3% or 3.75p to 128.5p after a consortium including Time Warner, Goldman Sachs and Apax Partners was reported to be planning a £6.6 billion approach for the company.
The market was also lifted by the mining sector, with BHP Billiton rising 15p to 737p and Xstrata lifting 18p to 1107p.
The news was gloomier outside the top flight, with builders’ merchant Travis Perkins lifting to the top of the FTSE 250 fallers with a near-8% loss after saying its ownership of DIY firm Wickes had got off to a tough start as sales continued to erode. Shares were 139p lower at 1638p.
Building and support services group Kier fell 20p to 920p as downbeat comments about the housing market overshadowed its prediction that full-year profits would be well ahead of last year and at the higher end of market expectations.
Elsewhere, supermarket group Somerfield lost more than 2% or 4p to 191.5p after it emerged that the boss of suitor Baugur was one of six individuals charged with fraud.
And sports retailer JJB Sports lost 3.75p to 183.75p after a report that executive chairman David Whelan was preparing to end 30 years at the helm of the group.
Bar operator Urbium was also in the red after saying last month’s warm spell had turned away punters. Shares weakened 12.5p to 802.5p as it warned trading would remain tough for the rest of the year.
Department store chain Beatties was heading in the opposite direction - cheering 6.5p to 170.5p – after confirming it had been approached by a potential gatecrasher to its £69.4 million takeover by House of Fraser.
Biggest risers were BP up 23p to 617p, ITV gaining 3.75p to 128.5p, BHP Billiton advancing 15p to 737p and Shell adding 10.25p to 563.25p.
Biggest fallers included Enterprise Inns down 15.5p to 834p, Marks & Spencer off 6p to 355.75p, Kingfisher losing 4p to 246.25p and Northern Rock retreating 12p to 792.5p.
