FTSE rally continues
The FTSE 100 Index continued its rally of recent days to hover close to the 4,900 barrier today.
The London market took its cue from gains by the Dow Jones Industrial Average last night, adding 17.4 points to reach 4899.7 by mid-morning.
At one point the Footsie stood 35 points higher as the top flight index chased its fifth positive session in a row. Stronger mining stocks led the rally, with Xstrata up 22p at 938p and BHP Billiton 14p stronger at 663.5p.
The Dow had earlier closed in positive territory following news of an increase in oil stockpiles and a better-than-expected survey on activity in the US service sector.
An advance by shares in General Motors also helped the Dow pare some of its recent losses triggered by concern about slowing economic and profit growth.
Back in London, analysts said the election would occupy many traders’ thoughts.
However, with any result not being known before tomorrow, attention focused on a mixed first quarter update from ICI.
The chemicals and paints group found itself at the top of the Footsie fallers board, down 5% or 13.25p to 249.75p, after spoiling news of a good start to 2005 by warning of uncertainty in the rest of the year.
However, catalogue retailer GUS lifted 9.5p to 856p after saying its credit checking arm Experian was buying a US cost comparison website.
And BAE Systems shares were 4p stronger at 265.25p after the Financial Times reported the company was nearing a deal with unions to knock £1.7bn (€2.5bn) off its £2.8bn (€4.1bn) pension liability.
Meanwhile, the latest milk contract review in the supermarket sector concentrated the minds of investors in three food companies.
Arla Foods rose 2p at 63.5p and Dairy Crest added 18p to 459.25p after securing supply deals with Morrisons, but Robert Wiseman missed out, causing its shares to dive 30p to 240p.
