Footise looks for direction but closes on high note

THE London market struggled for direction yesterday as a volatile week drew to a close with the FTSE 100 Index at its highest level for more than a month.

Blue-chip shares had looked set to build on yesterday’s 156-point rise but went into a reverse before settling up just 2.5 points at 4330.

However, investors looking for signs of better times will at least be encouraged the market managed an eight-point improvement on the week.

The passing of the deadline for chief executives to certify their accounts in the US passed with no major shocks and has helped instil a degree of confidence into world markets. A positive close on Wall Street on Thursday night, where rare upbeat earnings statements, including from Dell Computers, helped boost sentiment.

However, shares lost their gloss in London as indications of a weaker opening in New York sent the Footsie down 41 points at one point.

Telecoms and banks were helping the market stay in positive territory, with a broker upgrade giving BT Group a much-needed lift after recent woe. BT topped the Footsie risers’ board with a gain of more than 6%, or 13p to 220p, while mobile phone giant Vodafone broke the £1 barrier with a rise of 3p to 100p. Rival mmO2 added p to 44p

Among the banks, Barclays put on 5p at 461p, Lloyds TSB was 8p heavier at 575p and Abbey National lifted 9p to 761p. Oil stocks lost ground with BP down 5p at 519p and Shell up 3p to 445p.

Traders were cheered by news Corus has agreed to sell its entire 20% interest in the Aluminerie Alouette smelter in Canada for around £108 million.

Outside the FTSE 100, it was another dramatic session for beleaguered telecoms group Marconi a further £30 million was wiped off its value.

The former stock market star sunk 30% or 1.08p to 2.52p in the wake of reports that its financial overhaul would leave shareholders owning less than 1% of the firm.

The restructuring is expected to be announced in the next few days.

Elsewhere, IT services firm CMG gained 3p at 55p on news it had won a £5 million contract to provide payroll services to 13 government agencies.

IT firm Newmark Technology also gained, jumping more than 28%, or half a penny to 2p, after securing a deal to snap up a rival.

The group is buying Grosvenor Technology, which designs and makes security management systems for clients such as Marks & Spencer, the Metropolitan Police and the Inland Revenue, in a deal worth up to £6.8 million.

The biggest Footsie risers were BT Group up 13p at 220p, Kingfisher ahead 10p at 226p, Dixons up 8p at 173p, and Daily Mail & General Trust ahead 24p at 542p.

The biggest fallers were Granada down 6p at 74p, Invensys off 3p at 61p, Bradford & Bingley down 18p at 317p and Gallaher off 30p at 640p.