Footsie hits three-month high

Scenes of coalition troops entering Saddam Hussein’s palaces in Baghdad helped London’s FTSE 100 Index reach its highest close for almost three months today.

With the Dow Jones Industrial Average in New York already ahead 177.5 points, London’s leading shares ended in positive territory for the fifth successive session.

Traders had predicted a strong start to the week, and they were not disappointed with the blue chip index closing up 121.4 points at 3935.8 – its highest since January 15.

Shares were sent soaring on the back of weekend developments in Iraq during which US troops were reported to have entered central Baghdad while their British allies advanced in Basra.

That momentum continued into the afternoon with just three companies in negative territory by the close of trading.

Dealers said the market was building up a head of steam and volumes were higher than in recent weeks but some analysts warned that the sharp rise could lead to equally sharp falls later.

Among the risers was Anglo-Swiss mining company Xstrata which rose 11% 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 53.5p at 540p.

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

The company put on 7.75p or 9% to 94.75p, while Prudential rose 19.5p to 361.5p, Norwich Union owner Aviva was up 13p to 400p and Legal & General was ahead 4.75p at 81p.

Safeway headed the fallers board with a 1.5p loss to 258.5p, closely followed by Scottish Power, which lost 2.25p to 391.75p, while Boots, which lost 2p to close at 534.5p, was the only other faller in the FTSE 100.

Meanwhile in the FTSE 250 Index, British Airways soared 8.5p to 124.25p and low cost carrier easyJet rose 10.5p to 237p 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 4.5p to 421p while Shell gained 10.5p to 403.75p.

Industry benchmark Brent crude lost 68 cents to 24 US dollars a barrel, after earlier touching a four-month low.

Outside the Footsie, troubled engineering group Invensys topped the FTSE 250 risers, jumping 22% after it announced two deals with Bombardier to upgrade signals on parts of the London Underground. Shares closed up 2.5p at 12.5p.

Royal & Sun Alliance and Rolls-Royce – also recently demoted from the FTSE 100 - were carried higher. Royal & Sun Alliance closed up 11% or 9.25p at 9p, while Rolls Royce managed 12% or 9.5p at 90p.

The biggest FTSE 100 risers were Schroders NV up 55p at 548.5p, Xstrata up 53.5p at 540p, Canary Wharf up 12.5p at 150p and Friends Provident up 7.75p at 94.75p.

The only FTSE 100 fallers were Safeway down 1.5p at 258.5p, Scottish Power down 2.25p at 391.75p Boots down 2p at 534.5p.