Positive start on Wall Street boosts trading to rare high

THE London market finished on a rare high note yesterday after an upbeat start on Wall Street boosted trading.

Investors were relieved that data from the US Institute for Supply Managers was not as bad as feared and the Dow Jones Industrial Average moved ahead.

That supported London, where bargain hunters were pushing shares ahead after Monday’s £44 billion sell-off.

Then, the FTSE 100 Index closed down nearly 200 points, but yesterday the session ended up 75.6 points at 3797.4.

Also boosting the market were signs from the Nationwide Building Society that the UK housing market had remained buoyant last month.

Banks with strong exposure to the mortgage market were lifted. HBOS rose 33p to 620.5p, Abbey National added 35p to 550p and Barclays was up 26p at 397.5p.

Mobile phone group mmO2 was the day’s biggest riser, up 4.25p at 44.25p.

But there was no such joy for hotels group Six Continents; shares fell 10%, or 62p to 531p, to top the Footsie fallers.

Leading the FTSE 250 fallers was support services group WS Atkins, which ploughed 72% or 137p to 52p.

Back in the FTSE 100, the biggest risers were mmO2, up 4.25p at 44.25p, Cable & Wireless, up 9.5p at 125p, ICI, up 16.75p at 220.75p and Barclays, up 26p at 397.5p.

The heaviest fallers were Six Continents, down 62p at 531p, Capita Group, down 8p at 190p, J Sainsbury, down 10.25p at 269.75p and SABMiller, down 13.75p at 422.25p.