London shares back in black

London’s leading shares were back in the black today after swinging between positive and negative territory for much of an uncertain session.

After rising slightly early on, the benchmark index spent much of the morning below its opening mark before reaching lunchtime 10.1 points ahead at 3937.9.

While recent corporate updates have offered encouragement, analysts said the economic picture was still difficult to call and had done little to inspire the blue-chip index through the psychologically important 4000 barrier.

Traders were also looking for direction from New York although indications are for a slightly weaker opening across the Atlantic.

On a brighter note, healthcare group Amersham surged 6% to the top of the Footsie risers board after reporting “good momentum” in the first three months of 2003. With the company’s outlook unchanged, shares rose 24.5p to 446p.

Not far behind was automotive and industrial engineering group Tomkins – up 8p at 213p – after it added to its portfolio of North American businesses with a £143 million agreement to buy Canadian-based Stackpole.

And pharmaceuticals groups featured among the Footsie risers after AstraZeneca and GlaxoSmithKline both impressed with first quarter figures.

Astra rose 3% or 69p at 2445p after reporting rising sales despite generic competition for its ulcer drug Losec. Glaxo’s comments of a strong start to the year also resulted in a 22p rise to 1251p.

Leisure group Whitbread proved another riser following a “robust” performance in March and April and a 10% rise in annual underlying operating profits. Shares initially surged 11p but later stood 3p ahead at 613p.

But it was a less positive day for banks. While Royal Bank of Scotland was unchanged 1644p, Barclays was down 9.75p at 433.25p, Lloyds TSB was off 5p at 416.5p and Alliance & Leicester fell 11.5p to 823p.

Insurers were mixed as Norwich Union owner Aviva slipped 4p to 447p but - outside the top flight – Legal & General gained 1.25p to 78p after a 4% fall in new business sales came in at the top end of expectations.

Also in the second tier First Choice offered a ray hope for the battered travel sector after reporting signs of improved booking levels over the last two weeks. Shares rose 3p to 92p, while rival MyTravel inched up 0.7p at 10.7p.

And turnaround plans at retailer Body Shop appeared to be on track today following a 76% surge in annual bottom-line profits. Shares gained 0.5p at 90p as management pledged to continue the recent improvement.