FTSE forges ahead
The London market pushed ahead today as traders expected more positive employment figures from the US and seized on reports of a mooted peace deal for Libya.#
The FTSE 100 Index was 75 points higher at 5989.7 ahead of US unemployment claims data, which are expected to be in keeping with an upbeat private-sector report yesterday.
Meanwhile, battles and violence continued in Libya, where anti-government protests were on the verge of turning into full-blown civil war.
However, President of Venezuela Hugo Chavez, who is known to be close to Libyan leader Muammar Gaddafi, proposed a commission from Europe, Latin America and the Middle East to try to negotiate a peace deal.
Oil prices, which have soared in the last few weeks, calmed – with London Brent crude pulling back nearly 1% to $115 a barrel.
The impact of softer oil prices was reflected on an extensive risers’ board with Thomson Holidays owner TUI Travel up 3.1p at 234.2p and British Airways owner International Consolidated Airlines ahead 3.9p at 230.1p.
However, the big development of the session involved BSkyB after Culture Secretary Jeremy Hunt gave his provisional backing to remedies proposed by Rupert Murdoch’s News Corp for the media giant’s planned takeover of the broadcaster.
With News Corp looking to spin-off Sky News but retain a 39% stake, investors took the view that a deal for BSkyB had moved a step closer. Shares rose nearly 3% or 20.5p to 820p, even though the Financial Times said those BSkyB investors hoping for more than 750p to 800p a share were likely to be disappointed.
In another busy session for corporate news, shares in insurance giant Aviva pushed higher after it posted a better-than-expected rise in operating profits.
The group saw profits increase by 26% to £2.55bn (€3bn) in the year to December 31, ahead of the £2.45bn (€2.87bn) analyst consensus forecast compiled by the company. The stock was up 10.4p at 460.1p or 2%
Outside the top flight, JJB Sports was once again on the back foot after the ailing retailer revealed it had offered landlords a pay-out of up to £7.5m (€8.8m) in a bid to push through a deal that could see 89 stores close as it battles to stave off administration. JJB shares fell 1.8p to 19.2p.
Taylor Wimpey cheered investors with its full-year results as it announced a return to the black and saw shares lift 1p to 40p.
The housebuilder, which has shifted its focus onto maximising the value of each home sold, said pre-tax profits before exceptional items were £75.1m (€88.1m) in 2010, against losses of £96.1m (€112.8m) the previous year.
