Compass shares boost FTSE
Shares in catering firm Compass continued to boost the London market today as heavyweight miners also added to the positive sentiment.
Analysts have been impressed with Compass after it suggested the business was turning the corner following a string of profits warnings.
The company’s performance helped the FTSE 100 Index rise 25.8 points to 6074.5 by mid-morning.
Miners were also up amid continuing talk of consolidation in the metal sector and a series of broker upgrades.
Xstrata was leading the pack – up 78p at 2358p – as Goldman Sachs suggested the stock was underpriced. Lonmin was amongst other front-runners, climbing 81p to 3151p with Antofagasta not far behind – up 11.75p at 491.5p.
Even Vedanta shared the upbeat session, lifting 34p to 1300p, despite Goldman Sachs downgrading the stock from buy to neutral.
Meanwhile, a pledge by insurer Prudential to double its new business profits in Asia caused shares in the top flight company to jump 1%. The Pru stood 3.5p higher at 664p as it outlined expectations for its Asian life insurance business by 2009.
The only corporate results of the session came from Wolverhampton & Dudley Breweries, which said underlying pre-tax profits rose by 13% to £101.5m (€151m) during the 12 months to September 30.
It added that recent trading had been strong, with sales at its Pathfinder pubs up 9.1% in recent weeks. Shares were up 3%, or 54p to 1635p.
But it could not beat soap maker PZ Cussons which also enjoyed a positive session, up 8.5p to 158p, following an encouraging trading update yesterday.
Rank endured a disappointing morning as shares slipped 3% – or 7.5p – to 270.5p as traders pondered whether there could be hold-ups over the leisure group’s plans to sell its Hard Rock cafe business.
