London: Mid-morning market report
London shares benefited strongly today from the surge that took the Dow Jones Industrial Average to its highest level in 11 months last night.
By mid-morning, the FTSE 100 Index was close to the 4200 barrier, up 32.7 points at 4185.6.
Traders put yesterday’s uncertain session behind them to share in the euphoria following a survey showing improving manufacturing confidence in the US.
Both the Dow Jones and the tech-laden Nasdaq added more than 2% last night, although further progress in New York is set to hinge on further economic data expected later today.
Financial stocks were among those to benefit from the improved sentiment in London, with Lloyds TSB up 16.25p at 473p, Royal Bank of Scotland rising 22p at 1771p and HSBC 9.5p heavier at 743.5p.
Only Abbey National bucked the trend in the sector, easing 2p to 518p ahead of an eagerly awaited trading statement tomorrow.
In the retail sector, B&Q-to-Comet group Kingfisher held firm – unchanged at 282.75p – after announcing a date for the long-awaited demerger of its electrical business Kesa, which includes Comet.
Rival electrical retailer Dixons showed a 6p rise to 113.75p.
Outside the top flight, Rolls-Royce continued to rally as it moves towards its return to the FTSE 100 Index next week.
Two major engines orders in as many days, including today’s deal with EgyptAir, have boosted the aerospace group’s shares, which gained 5.25p to 132.25p.
Toy retailer Hamleys also lifted 8p to 202p after Icelandic retailer Baugur announced it was behind a management buyout of the prestigious Regent Street toy store group.
Also in the sector, department store group House of Fraser added 3p to 90p – a 3% rise – after reporting a “creditable” first 20 weeks of its financial year.
