Markets react well to ICI profits and job cuts

SHARES in Dulux paint owner Imperial Chemical Industries Plc surged nearly 19% on Thursday, after the firm said it was cutting a further 1,410 jobs and reported better-than-expected first-half profits.

Shares in the firm, one of Britain's proudest corporate names, were up 17.7% at 165p by 13.20 GMT, as investors welcomed the group's latest plans to overhaul the business and slash costs. Before Thursday's rise the biggest one-day gain since July 2001 the shares had tumbled 39% this year.

The rally added nearly £300 million to ICI's market value, now at more than £1.9 billion.