FTSE makes further gains
The FTSE 100 Index made further gains today despite softer oil prices weighing heavily on energy stocks.
A strong performance by drugs companies and early gains on Wall Street injected some much needed momentum into London shares as the top flight overcame resistance from stocks such as BP and Royal Dutch Shell.
AstraZeneca was among the best blue-chip performers and was followed by GlaxoSmithKline as the Footsie closed 14.5 points higher at 5531.7.
AstraZeneca shares were up 62p to 2660p after a report that it had begun key research into a new lung cancer drug. The positive sentiment cheered GlaxzoSmithKline, whose shares were up 11p to 1465p.
A string of retailers tracked the pair on the risers board, with B&Q owner Kingfisher moving 2.75p forward to 223.25p, Argos firm GUS up 17p to 911p and Tesco ahead 2.5p at 312.5p.
Dixons group DSG International also lifted 1% as traders expressed relief at news there had been no further deterioration in trading in the UK. Although the group warned conditions remained difficult, shares lifted 1.5p to 152p.
Telecoms giant BT was in buoyant mood after broker Lehman Brothers raised its recommendation to “overweight” from “equal-weight”. Shares in the company rose 4.25p to 213.75p.
But the mood was less positive for materials technology company Johnson Matthey, despite the news that growth in its precious metals and ceramics businesses contributed to a 3% hike in underlying profits.
Shares fell 19p to 1270p as traders said there was not enough to drive the stock higher after a recent strong run.
Broadcaster ITV was the day’s biggest faller after news that it had gone ex-dividend – meaning investors no longer have the right to the most recent payouts. Shares in the company fell more than 2% or 2.5p to 109.5p.
Oil heavyweights BP and Royal Dutch Shell weighed on sentiment as the cost of a barrel of oil moved below 59 US dollars. BP weakened 6p to 657.5p while Shell lost 4p to stand at 1939p.
BG Group and Cairn Energy were also among the fallers, down 8.5p to 559p and 27p to 1898p respectively, while mining stocks were hit after a decline in copper prices overnight. Antofagasta fell 24p to 1660p while rival Xstrata was down 7p at 1363p.
And investors banked profits in online poker giant PartyGaming after significant gains yesterday. Shares in the PartyPoker operator slipped a penny to 105p.
Outside the top flight, cautious comments from the Australian bank circling the London Stock Exchange harmed sentiment. Macquarie Bank conceded it was struggling to know what its takeover target was worth, contributing to shares in the LSE falling 9p to 595p.
But takeover speculation was music to the ears of investors in EMI, whose shares surged 10% or 22p to 242p after Warner Music was touted as a possible suitor.
The top flight’s biggest risers were Old Mutual up 3.75p to 150.75p, Royal & Sun Alliance ahead 2.75p at 115.5p, Wolseley up 29p to 1231p and AstraZeneca up 62p to 2660p.
The heaviest fallers were ITV down 2.5p to 109.5p, BG Group off 8.5p to 559p, Johnson Matthey off 19p at 1270p, and Antofagasta down 24p at 1660p.
