FTSE advances
A strong trading update from Associated British Foods along with positive corporate results from Persimmon and Old Mutual lifted the London market into positive territory today.
The FTSE 100 Index advanced 43.9 points to 6445.4 as strong commodity prices added weight to blue-chip stocks.
Associated British Foods set the pace with a rise of more than 5% – up 41.5p to 849p – after it said improvements at its sugar division would see results in line with expectations despite higher input costs.
The company also highlighted a jump in sales at its low-cost clothing retailer Primark as it increased store openings during the last year.
Housebuilder Persimmon lifted nearly 4% on the back of a strong set of annual results. Pre-tax profits jumped 17.5% to £582.1 million, while the group said it remained confident of strong trading during 2007. The stock was 53p higher at 1477p.
Life insurance firm Old Mutual rose 6.5p to 188p after it posted a 16% rise in full year operating profits, even as it warned over its earnings outlook for 2007, particularly in its Swedish and South African businesses.
International Power jumped 9.5p to 388.75p after news of private equity interest in the sector. One of the United States’ leading utility groups TXU Energy met yesterday as it prepared to back a £22.6 billion bid by Kohlberg Kravis Roberts and Texas Pacific Group.
Broadcaster BSkyB lost 2p to 562.5p as investors worried about the impact of its negotiations with Virgin Media on its immediate earnings as well as the long-term regulatory outcome from the row.
In the second tier Alfred McAlpine’s shares slumped more than 18% on the news it had suspended two senior managers at its slate arm amid an investigation into possible fraud at the division.
The support services company said accounting irregularities – dating back to 2003 – would dent the firm’s 2006 profits by at least £13 million and cause a further blow to profitability this year.
The stock tumbled 113.5p to 500p.
