Footsie gets late boost
London’s FTSE 100 Index finished the session on a high today after better-than-expected economic data in the US gave leading shares a late boost.
Chemicals-to-paints group ICI emerged from a deluge of corporate results to take top billing on the Footsie with a 22% gain on the day.
But an opening surge on Wall Street saw the Dow Jones Industrial Average rise more than 100 points, helping the Footsie to close up 15.8 points at 4157.
US gross domestic product figures came out ahead of estimates, while unemployment fell to its lowest level since February.
The picture had looked gloomier for much of the day with the benchmark index stuck in negative territory.
ICI offered battered investors a glimmer of hope with half-year figures ahead of expectations and signs of improvement in the company’s troubled National Starch division and food flavouring arm Quest.
Shares closed up 31p at 171.25p with business information group Reuters close behind with a 14.5p gain to 251.5p.
Elsewhere insurer Aviva cheered the market with half-year figures ahead of expectations and comments suggesting the worst may be over for the sector.
The improvement was reflected in a 3% rise in the Norwich Union owner’s interim dividend, a move which followed a hefty cut earlier this year.
Aviva shares rose 24.75p to 516p and gave a much-needed lift to rivals, with Legal & General edging 3.5p higher to 100.75p, Prudential continuing its run of form with a 14.75p rise to 427.75p and Royal & Sun Alliance ahead 1.75p at 151.75p.
Banking stocks had a mixed day meanwhile, with Royal Bank of Scotland recovering yesterday’s losses with an 18p rise to 1757p and Alliance & Leicester up 24p at 895.5p.
HBOS was down, however, falling 17.5p to 775p after the announcement of the end of a joint venture with Royal & Sun Alliance. The bank had earlier impressed with a 24% rise in first half profits.
Among other risers, engines group Rolls-Royce climbed 2.5p to 152.5p, after interim results showed continued strength in demand for parts and servicing work had kept it on course to meet expectations of growth in 2003.
Rolls also expects to secure £160 million of business from yesterday’s Government order of up to 44 Hawk trainer jets for BAE Systems. BAE added another 6.25p on top of the previous session’s rise to stand at 154.25p.
The news from a busy morning was not all positive and British Gas-to-AA group Centrica fell 2.25p to 177.25p as investors expressed disappointment that a rise in the company’s dividend had not been higher.
Outside the top flight, British Airways gave back half of an earlier 4% rise as relief over the settling of a two-week industrial dispute receded.
BA stood 4p higher at 172.75p by the close as investors digested first quarter results showing a pre-tax loss of £45 million and a likely impact from the dispute of between £30 million and £40 million.
Leading the Footsie risers board were ICI up 31p at 171.25p, Reuters ahead 14.5p at 251.5p, Aviva up 24.75p at 516p and BAE Systems ahead 6.25p at 154.25p.
At the head of the fallers board were BT down 8.75p at 195.75p, Smith & Nephew off 9p at 371p, HBOS down 17.5p at 775p and Mitchells & Butlers off 5p at 239.25p.
