Footsie rises to six-month high
London’s FTSE 100 Index rose to a fresh six-month high today after a tentative session closed on a positive note.
Blue-chip shares drifted for much of the day before a healthy start to business in New York generated renewed buying action in the City.
By the close, the Footsie was up 11.7 points at 4083.6 after overcoming initial losses of almost 30 points in the first hour of trading.
Banking stocks caught the eye with Abbey National rising 33.25p to 502.25p, Lloyds TSB up 17.5p to 454.5p and Barclays 11p stronger at 443p.
The positive mood also helped continue the revival of Cable & Wireless as the telecoms stock lifted 4.75p to its highest point in seven months at 102.75p.
And Vodafone reached its best level in more than a year, up 3.5p at 130.25p in the week that the mobile phone giant produced strong underlying annual results.
However, a clutch of retailers were under pressure after FTSE 250 clothing chain New Look slipped 10% or 25p to 221.5p on the back of a downturn in sales in the two months since the start of its financial year.
That helped knock 10p off Footsie rival Next at 987p while Marks & Spencer eased 2.75p to 292.25p – a fall of almost 1%. Among other retailers, B&Q-to-Comet giant Kingfisher slipped 3.75p to 264.75p.
A trading update from pest control-to-office plants group Rentokil Initial also failed to impress as shares lost almost 6% or 11p at 183p, putting it at the head of the Footsie fallers board.
Paints and chemicals group ICI was not far behind, down 4p at 136.5p after a broker downgrade.
There was also plenty of trading interest outside the top flight with engine maker Rolls-Royce – a recent FTSE 100 reject – up 6% or 6p to 105.5p after sticking by hopes for profits growth this year.
Leading the fallers in the second tier was cash transfer and security group Securicor which slid 17% after warning of difficult market conditions despite a rise in half-year underlying profits. Shares lost 16.25p to reach 79.75p.
Although troubled engineering group Invensys reported operating profits in line with its own forecasts, pre-tax losses of £1.4 billion put further pressure on its shares as the group slipped 0.25p to 15.75p.
Meanwhile reincarnated telecoms equipment maker Marconi Corporation put on 2.5p to 65p as investors digested news of fresh cost cutting to tackle the company’s latest gloomy sales forecast.
There was also plenty of buying interest in betting shop chain William Hill after the company told shareholders that it expected half-year results to be at the top end of expectations. Shares surged 5% or 13p to 263p.
The biggest Footsie risers were Abbey National up 33.25p at 502.5p, Cable & Wireless ahead 4.75p at 102.75p, Amvescap up 15.75p at 363.75p, Sainsbury’s ahead 11p at 279p.
The biggest Footsie fallers were Rentokil Initial down 11p at 183p, InterContinental Hotels off 15p at 438p, ICI down 4p at 136.5p and Allied Domecq off 9p at 351.5p.
