London shares on the up

Share prices continued to advance alongside US-led military forces in Baghdad and Basra today as London’s benchmark FTSE 100 Index targeted its fifth day of gains.

Traders had predicted a strong opening for the Footsie and were not disappointed with the blue chip index soaring 138.8 points to 3953.2 by mid-morning.

Weekend developments in the Gulf during which US troops were reported to have entered central Baghdad while their British allies advanced in Basra sent shares soaring as the London market opened.

That momentum continued towards lunchtime with just one company in negative territory. Dealers said the market was building up a head of steam and volumes were higher than in recent weeks.

Leading the risers was Anglo-Swiss mining company Xstrata which rose 10% as traders welcomed news of its acquisition of Australian copper and coal mining group MIM Holdings.

The deal gives Xstrata the opportunity to expand away from coal into other, more profitable minerals. Shares were up 51p at 537.5p.

The only stock on the blue chip index to see falls by mid-morning was media group EMAP which eased 1p to 776p.

Financial companies were again in the thick of the action with insurer Friends Provident riding high in the Footsie risers.

The company put on 9p or more than 10% to 96p while Prudential rose 26p to 368p, Norwich Union owner Aviva rising 27.25p to 414.25p and Legal & General ahead 6p at 82.25p.

Meanwhile in the FTSE 250 Index, British Airways soared 9p to 124.75p and low cost carrier easyJet rose 1.75p to 228.25p after it said passenger number last month were 32.2% ahead of March 2002.

Despite a drop in the price of crude oil as dealers gamble on a short war in Iraq and minimal interruptions to global oil supplies, BP rose 14.5p to 431p while Shell gained 14.75p to 408p.