FTSE set for positive end to week
The FTSE 100 Index was set for a positive end to the week today after the General Election result broadly met City forecasts.
Labour’s majority had been widely factored in by analysts, leaving the top flight trading within a very narrow range – up 5.1 points at 4907.4 by lunchtime.
A positive close to the session would mark the sixth straight session of gains for the Footsie, an improvement that has taken the index to its highest point since the middle of last month.
Consumer goods giant Unilever was leading the blue-chip risers after posting first quarter figures ahead of market expectations.
Even though the company said it expected market conditions to remain “very challenging” in Europe, the blue-chip stock advanced nearly 4% or 20p to 535.5p.
Drugs groups were on the rise after an upbeat note on Shire Pharmaceuticals from Morgan Stanley. Shire lifted 9.5p to 567.5p after the broker said its pipeline could beat forecasts next week, while rival AstraZeneca advanced 23p to 2358p.
Miners were also lifting the market, adding to yesterday’s significant gains, with Anglo American ahead 14p at 1212p, Xstrata 9p stronger at 951p and Rio Tinto up 11p at 1649p.
However, investors were concerned about developments in the United States, where jobs figures should drive the New York market later this afternoon.
Outside the top flight, telecoms equipment group Marconi increased a penny to 280.5p after saying it was cutting 800 jobs in the UK as part of an overhaul aimed at improving its competitiveness.
Takeover target Somerfield was lifted by news that Rochdale-based United Co-operatives was exploring the possibility of making an offer, boosting its shares 2% or 4.75p to 202.25p.
And elsewhere in the supermarket sector, blue-chip Sainsbury’s climbed 1.75p to 285.75p after the latest industry data showed it increasing its share of the grocery market.
Back in the lower tiers, Bob the Builder group Hit Entertainment weakened 3% or 9.75p to 298.25p after potential suitor Lions Gate Entertainment walked away from takeover talks, leaving the way clear for private equity group Apax Partners’ planned £489m (€718.9m) deal.
Online auctioneer QXL Ricardo also slipped 44p to 1856p despite making “significant” progress in its battle to return to the black and sounding an upbeat note about its markets. The group said profitability would be affected by spending on advertising in the short-term.
