Bargain-hunters spark FTSE rally
Bargain-hunters sought out cheap banking stocks today and helped to spark a welcome rally by the FTSE 100 Index.
By lunchtime the Footsie was up 61.2 points at 3939.3 after falling to a nine month low before the weekend.
Heavyweight banking stocks led the way as investors decided to make the most of the recent sell-off caused by fears of rising bad debts.
News of a bumper takeover offer by French bank Credit Agricole for its rival Credit Lyonnais also buoyed sentiment in the sector.
Those on the way up included Barclays, ahead 23p to 398.25p, Abbey National, 14.5p stronger at 512.5p and Lloyds TSB, 13p brighter at 452.5p.
Oil stocks were also playing their part in driving the London market higher with BP up 9.5p at 420p and Shell 6.25p healthier at 400.5p.
Of the other high-flyers, troubled telecoms group Cable & Wireless was on the up in its last week in the top flight before demotion to the FTSE 250.
Reports over the weekend of a planned £1.5bn break-up bid pushed shares in the business up 2.5p to 46p, a rise of almost 6%.
High street chemist Boots was also improving as investors cheered confirmation it had begun the search for a new chief executive to replace Steve Russell.
Chairman John McGrath is also going as the company attempts to “speed up” the pace of strategic change and its shares rose 10p to 560p.
But Marks & Spencer fell nearly 3%, or 10p to 324.25p, on speculation of poor clothing sales in the run-up to the crucial Christmas period.
The speculation, in a press report yesterday, led to a mixed reaction elsewhere with Next up 1.5p to 781.5p and Argos group GUS down 4p to 570.5p.
Among corporate news today, stricken telecoms group Marconi confirmed the final details of a life-saving debt-for-equity swap.
It will slash debt and leave shareholders with just a 0.5% interest and shares in the former giant fell more than 5%, or 0.10p to 1.85p.
Recruitment consultancy Robert Walters dived almost 15% after warning the gloomy jobs market meant it would only break-even in the second half.
And transport group National Express slid 19.5p to 400p as investors reacted to news this year’s results will bear a £135m charge.
The group plans to quit its Australian tram and train operations after failing to reach an agreement over funding with the Victoria state government.
