Footsie hits three year high
The FTSE 100 Index set another three year high today as the performance of heavyweight shares helped add to the feel-good factor in London.
Oil majors BP and Shell had already pushed the top flight significantly higher before the Olympics vote rounded off an upbeat session to leave the Footsie 39.5 points stronger at 5229.6 by the close.
As expected, many construction firms were in positive territory as investors looked for buying opportunities following the decision in Singapore.
BP, which accounts for around 10% of the top flight, and rival Shell had earlier driven the Footsie over the 5200 barrier after crude oil prices headed back to the 60 US dollars a barrel mark.
Prices strengthened amid concerns about supply disruptions in the United States as a tropical storm pounded the Gulf Coast, forcing the evacuation of rigs in the Gulf of Mexico.
BP rose by almost 2% at one point before settling back to end the session 1% or 7.5p stronger at 630p. Shell put on 5p at 568.75p.
A number of other heavyweight stocks lifted the market with mobile phone operator Vodafone up 1.5p at 138p and pharmaceuticals group GlaxoSmithKline 15p stronger at 1372p.
The biggest rises, however, came from the financial sector after fund manager Amvescap said Canadian rival CI Fund Management had expressed an interest in its Canadian operation and indicated it may also be keen on the whole UK group.
Amvescap surged 15% or 32p to 395p, while Man Group lifted 68p to 1544p and Schroders cheered 27.5p to 792.5p.
The Olympics factor contributed to healthy gains for a number of construction-related firms, including building products firm Hanson – up 11p at 545.5p.
Among other potential beneficiaries, Costain rose 2p to 52.5p and Barratt Developments gained 24.5p to 725.5p. Telford Homes, which has a development close to the Olympics site in Stratford, surged 13% or 18p to 157.5p.
Corporate announcements were focused on the second tier, and in particular cautious comments on trading conditions from supermarket group Somerfield.
Somerfield investors were cheered, however, by the company’s update that it was still in “advanced” takeover talks with potential bidders. Shares closed 3.5p higher at 194.5p.
Elsewhere, pubs and brewing firm Greene King failed to earn reward for record annual profits of £94 million and a report of positive summer sales. The stock was in positive territory for a while, but ended 11p lower at 1283p.
Recruitment firm Michael Page managed one of the strongest performances of the session after surprising analysts with a 30% jump in second quarter revenues and a forecast that profits would be ahead of expectations. Shares jumped 13% or 26.25p to 228.25p.
The biggest Footsie risers were Amvescap up 52p at 395p, Man Group ahead 68p at 1544p, Scottish & Newcastle up 21p at 488.25p and Schroders NV ahead 28.5p at 718.5p.
The biggest fallers were GUS down 25.5p at 841.5p, Tate & Lyle off 10.5p at 464.5p, Cable & Wireless down 2.75p at 145.25p and Morrisons off 3p at 181.5p.
