Footsie holds early gains
London’s top-flight shares held most of their early gains today as Wall Street looked set to open higher.
After moving about 24 points above its opening level during mid-morning, the FTSE 100 was 17.2 points ahead at 4274.4 by lunchtime.
Analysts predicted a stronger opening for the US indices and “a very interesting week”, with market players positioning themselves for the next quarter, after profit-taking on Friday sent the Dow Jones Industrial Average nearly 85 points lower.
Strong UK manufacturing output figures offering fresh signs of better times ahead for the economy helped lift the mood in London.
Mobile phone groups mmO2 and Vodafone continued to rule the roost. The former topped the Footsie leader board with a 1.5p rise to 57.5p and Vodafone gained 2.5p to 121.5p.
Mining stocks continued the recent strong run for the sector as Xstrata followed mmO2 in the risers with a 12.75p rise to 512.75p.
RioTinto advanced 13p to 1403p and Anglo American gained 8.5p to sit at 1212p.
But insurer Royal & Sun Alliance neared the top of the FTSE 100 fallers with a 3.75p drop to 124.25p, as investors continued to fret over its plans for a fund raising announced last week.
United Utilities was the worst victim of the market’s wrath, as its non-preference share value topped the losers board with a 6p dip to 93p.
Business information group Reuters also lost out, falling 7.5p to 249p as investors shrugged off last week’s upbeat talk about possible divestments supporting near term dividend payments.
And healthcare companies failed to repeat progress last week, with Alliance Unichem falling 10p to 530.25p, GlaxoSmithKline off 18p at 1257p and AstraZeneca losing 28p to 2622p.
Outside the top flight, builders merchants Travis Perkins climbed 38.5p to 1297p after posting a sharp rise in first half profits and increasing its dividend to shareholders.
Another strong set of results from the housebuilding sector – this time from Bovis Homes – gave shares a lift.
While Bovis itself climbed 5.5p to 479.5p, Bellway gained 11.5p to 664.5p and Berkeley rose 19.5p to 837p.
Meanwhile, pubs group Punch Taverns gained 3p at 303p as investors welcomed news of a £250 million refinancing deal to fund expansion.
After an initial penny fall on the back of a trading update that included predictions of a better-than-expected second half, Associated British Foods recovered to stand 5p up at 515.5p.
