Kingfisher rumours boost FTSE
Takeover speculation surrounding B&Q owner Kingfisher helped lead a strong rally for the FTSE 100 Index today.
The retailing group topped the Footsie risers board with a gain of nearly 5%, or 11.5p to 257p, after a broker said weekend reports that private equity groups were considering bids could be near the mark.
The news and gains by oil companies on the back of overnight rises in the cost of crude lifted the Footsie by 53.4 points to 4855.1 by mid-morning.
Trading in the City got off to a good start after markets in the US and continental Europe performed well yesterday.
The Dow Jones Industrial Average lifted 59 points as the price of crude fell before last night’s gains and traders celebrated more upbeat earnings news. The price of a barrel of US light crude dipped to just over $50 in futures trading today.
Analysts forecasted the Dow to fall today ahead of an expected rise in US interest rates by the Federal Reserve this evening.
In the UK, Friends Provident was second in the Footsie risers after an increase in business from independent financial advisers helped it boost UK sales by a fifth.
With first quarter UK sales up to £88m (€129.4m), from £74m (€108.8m) last time, Friends shares stood 5p higher at 165.5p. Among other insurers, Norwich Union owner Aviva cheered 10.5p to 599.5p and Royal & Sun Alliance gained 0.75p to 76.25p.
Elsewhere, Marconi shares recovered some of their recent weakness, gaining 7% after it announced it was considering “all strategic options”. With a sale of the business seen as an increasing possibility, the stock gained 18.5p to 280p.
Shares in discount clothing retailer Matalan also lifted after reports said it was likely to sell jeans business Lee Cooper. The stock put on 2% or 4.5p to 193.5p.
