FTSE up for first time this week
The FTSE 100 Index was heading for its first positive finish this week after investors applauded figures from Royal & Sun Alliance.
R&SA doubled early gains to stand 6% ahead by mid-morning after first-quarter profits of £122m (€178.4m) beat expectations, helping the Footsie to power 27.2 points higher to 4902.6.
A strengthening US dollar in the wake of weaker oil prices and speculation that China will revalue its currency – factors that helped the Dow Jones Industrial Average to close in positive territory last night – also supported sentiment.
The insurance sector captured the attention of the market after R&SA offered evidence that its recovery was crystallising after a turbulent couple of years.
Shares in R&SA advanced 4.25p to 77.75p and helped rivals to make headway including Norwich Union owner Aviva, up 7.5p to 616p, and Legal & General a penny higher at 108.25p.
But the renewed enthusiasm of investors for blue-chip stocks failed to generate interest in International Power, which eased 6p to 181.75p.
Analysts said the energy group had delivered a strong set of results, with underlying profits doubling to £83m (€121.4m) in the first quarter of this year, but investors appeared keen to switch their investments out of so-called “safe” stocks.
Also reporting in the top flight, industrial gases group BOC cheered 23p to 996p after offering a positive outlook for its global business.
Elsewhere, online travel agency Lastminute leapt 9% or 14p higher to 167p after agreeing to be taken over by the owner of the Travelocity for £577m (€843.7m).
But it was beaten to the top spot by office provider Regus – up 13% or 12p to 104p – as it appeared to be the latest company in the FTSE 250 Index to attract bid talk.
Home shopping group Findel was another strong riser outside the top flight after it said like-for-like sales rose 11% in the past six weeks. Findel cheered 6% or 25p to 445p as it beat the performance of rival N Brown, which updated the market earlier this week.
