FTSE closes for Christmas near 5600
The FTSE 100 Index broke the 5600 barrier for the first time in four years today as hopes for a strong 2006 continued to build.
London’s top flight shares index peaked at 5608.2 before falling back to close for Christmas down 1.6 points at 5595.4.
Significant progress was slowed by low trading volumes and the lack of corporate news in today’s shortened session, but the recent surge away from the 5540 mark will provide investors with confidence for the new year.
Housebuilder Persimmon topped the table after the Office of Fair Trading gave it an early Christmas present by deciding not to refer its proposed acquisition of Westbury to the Competition Commission.
Shares rose 2% or 24p to an all-time high of 1275p as Persimmon celebrated the end of its first week in the FTSE 100 Index.
Fellow newcomer Kazakhmys was also in festive mood as it rose 8p to 743.5p. The Kazakhstan-based copper mine was one of many in the sector in positive territory, with BHP Billiton up 12p to 925p, Antofagasta ahead 17p at 1853p and Xstrata 9p better off at 1347p.
Marks & Spencer was one of the highlights of the session as shares crept ever closer to the £5 mark. With analysts confident of a strong Christmas for the retailer, shares stood 5.25p at 498.5p.
High street rival Next jumped 10p to 1544p, but supermarket giant Tesco was caught in a spree of selling as its shares fell 2.75p to 326.75p.
Drugs giant AstraZeneca was another riser after it said it was buying Cambridge-based cancer treatment research firm KuDOS Pharmaceuticals for around £121m (€177m). Shares stood 17p higher at 2795p, in contrast to GlaxoSmithKline which slipped 7p to 1461p.
Elsewhere, BAE Systems found itself in negative territory after hitting a three-and-a-half year high yesterday.
Shares in the defence and aerospace giant have soared in recent days after an agreement between the UK and Saudi Arabia over new Eurofighter planes looked set to land the company its biggest deal in 20 years. The stock rose early in the session but later closed 6.5p lower at 378.5p.
Oil giants BP and Royal Dutch Shell also weighed on the market, falling a penny to 621.5p and 13p to 1858p respectively. Smaller rival Cairn Energy was also in the red, slipping 10p to 1918p.
The session saw the return of online retailer ASOS after it was forced to suspend its shares in the wake of the Buncefield oil depot fire.
It said profits remained in line with expectations as it was fully insured, while the business should be fully operational by mid-January. The disruption caused shares to initially fall 8% but investors sensed a buying opportunity to leave the stock 3% or 2p lower at 75.5p.
The top flight’s biggest risers were Persimmon up 24p to 1275p, Sage Group up 4.25p to 257.75p, Royal & Sun Alliance ahead 1.75p to 124.25p and Daily Mail & General Trust 10.5p better off at 779p.
The heaviest fallers were Alliance UniChem down 14.5p to 785.5p, National Grid off 10p to 563.5p, BAE Systems down 6.5p to 378.5p and Yell Group off 5.5p at 528p.
