FTSE at highest level in a month
Companies in the energy and oil industries were today powering the FTSE 100 Index to its highest level in a month.
Heavyweights including BP and BG Group helped the Footsie to overcome a sticky start to advance 16.8 points to 5481.9 by mid-morning – putting the index on course for its highest finish since October 4.
But the excitement was greatest outside the top flight where a surge by housebuilders on the back of takeover activity sent the FTSE 250 Index to a new all-time high of 8062.4.
The trigger was an approach by Persimmon for Westbury that led traders to speculate on which property developers will be next to become acquisition targets.
Back in the main tier, oil and gas explorer Cairn Energy rose 26p to 1846p and BG Group climbed 9p to 530p as they outperformed larger rivals BP and Royal Dutch Shell – up 8.5p and 24p at 627p and 1828p respectively.
Utilities were also faring well with Scottish & Southern Energy setting the pace with a 15p gain to 1017p, while Antofagasta led miners higher – ahead by 28p at 1623p.
But there were few buyers for financial and insurance stocks as Friends Provident dipped 3p to 188p and Aviva lost 6p to 682.5p.
Outside the top flight, housebuilder Westbury rose 12% or 60.75p to 554.75p as investors traded shares for the first time since it received a takeover approach from Persimmon on Friday.
Shares in Persimmon gained 8% or 72p to a record 1022p, while hopes of consolidation boosted rivals including Bellway – up 51p at 1001.5p.
The takeover spotlight was also on drug delivery firm SkyePharma, which rose 10% or 4.5p to 50.5p after receiving a surprise takeover approach. It has appointed Lehman Brothers to conduct a strategic review.
But investors in parcels and mail delivery firm Business Post were reeling from the news that annual profits are likely to be 20% below market hopes. Shares dropped 102.5p to 331p, meaning they have now halved in value in just three months.
