London's share hold firm
Reports of US-led military advances in Baghdad and Basra helped keep London’s leading shares hold firmly in positive territory today as the FTSE 100 Index targeted its fifth day of gains.
Traders had predicted a strong start to the week and were not disappointed with the blue chip index remaining well above its opening mark at 133.9 points to 3948.3 by lunchtime.
Shares were sent soaring on the back of weekend developments in Iraq during which US troops were reported to have entered central Baghdad while their British allies advanced in Basra.
That momentum continued into the afternoon today with just three companies in negative territory.
Dealers said the market was building up a head of steam and volumes were higher than in recent weeks.
Leading the risers was Anglo-Swiss mining company Xstrata which rose 10% as traders welcomed news of its acquisition of Australian copper and coal mining group MIM Holdings.
The deal gives Xstrata the opportunity to expand away from coal into other, more profitable minerals. Shares were up 48p at 534.5p.
AB Foods headed the fallers board with a 3p loss to 511.5p, closely followed by Safeway, down 1p at 259p, and Scottish Power which lost 0.5p to 393.5p.
Financial companies were again in the thick of the action with insurer Friends Provident riding high in the Footsie risers.
The company put on 9p or more than 10% to 96p while Prudential rose 24p to 366p, Norwich Union owner Aviva rising 22.5p to 409.5p and Legal & General ahead 5p at 81.25p.
Meanwhile in the FTSE 250 Index, British Airways soared 8.25p to 124p and low cost carrier easyJet rose 1.5p to 228p after it said passenger number last month were 32.2% ahead of March 2002.
Despite a drop in the price of crude oil as dealers gamble on a short war in Iraq and minimal interruptions to global oil supplies, BP rose 14p to 430.5p while Shell gained 12p to 405.25p.
Industry benchmark Brent crude lost more than a dollar to 23.61 dollars a barrel, a four-month low.
Outside the Footsie, troubled engineering group Invensys leapt 32% after it announced two deals with Bombardier to upgrade signals on parts of the London Underground.
Meanwhile Royal & Sun Alliance, freshly relegated from the FTSE 100, was up almost 11% to 9.25p to 94p.
