Footsie falls back from 6000 mark
The latest round of takeover interest in London failed to inspire the market today as it slipped just off yesterday’s recent high.
A string of retailers surged up the blue chip risers board after mid-cap stock Kesa was targeted by private equity suitors.
But with financial stocks going backwards the FTSE 100 Index failed to maintain earlier gains which saw it get within 22 points of the 6,000 mark as it closed the day 2.2 points down at 5950.6.
Comet owner Kesa grabbed much of the attention today after it revealed it had rejected an approach worth £1.72 billion from a private equity firm.
Shares in the European operator jumped almost 11% in the second-tier of the market – up 32p at 325p – as investors were faced with further bid speculation following yesterday’s developments involving heavyweights Vodafone, BAA, the London Stock Exchange and Mitchells & Butlers.
The chief top flight beneficiary of the Kesa announcement was Kingfisher, which ticked 6% higher or 14.25p to 253.25p, amid hopes of further consolidation in the retail sector.
Dixons owner DSG International was also on the move, up 10.25p to 187.25p, while Marks & Spencer cheered 16p to 570p and Argos owner GUS gained 18p to 1077.5p. In the FTSE 250 Index, WH Smith was up 21.5p to 995p.
But the biggest gains of the session came from oil exploration company Cairn Energy after it produced a solid set of full-year figures and upgraded its reserves estimate for key fields in Rajasthan. Shares were up 7%, or 126p to 2063p, as the company also said it was considering a part-flotation of its Indian business.
Financial stocks went in the other direction and weighed heavily on the market, with bank HBOS down 12.5p to 1000.5p and insurer Royal & Sun Alliance 1.5p lower at 134.5p.
London Stock Exchange took centre stage yesterday with a 30% rise in its share price after New York-based exchange Nasdaq became involved in the long-running battle surrounding the LSE.
With analysts expecting other offers, the stock shook off a subdued start to add another 41p to reach 1190p.
Pubs chain Mitchells & Butlers gave up some of its strength after learning it was in the sights of property tycoon Robert Tchenguiz. Shares rose 19% last night but were off 10p to 480p, a drop of 2%.
Elsewhere in the FTSE 250 Index, industrials group Cookson picked up 36.5p to 525p, a gain of 7%, after it posted improved profits for 2005 and spoke optimistically about prospects for this year.
Woolworths managed a more modest gain of 3%, even though it said its wholesale distribution arm EUK had lost a contract to supply Tesco with DVDs and music. Analysts said the news was no shock after a warning in January and shares lifted a penny to 36.25p on the back of news about Kesa.
The day’s biggest blue chip risers were Cairn Energy up 126p to 2063p, Kingfisher 14.25p stronger at 253.25p, DSG up 10.25p to 187.25p and Hanson up 24p to 741p.
The heaviest fallers were PartyGaming off 2.25p to 127.5p, WPP down 11p to 683.5p, International Power 4p lower to 274p and Amvescap down 7.5p to 528p.
