Footsie on course to finish week on high

Blue-chip shares made further strides today as the FTSE 100 Index looked on course to finish the week at a higher level than on Monday morning.

With the market strengthening as the session wore on, the Footsie reached lunchtime 17.1 points brighter at 4240.6 – a whisker away from its starting point following a decidedly mixed week for shares.

Investors appeared content with progress following the Footsie’s recent show of strength in the past month, although there was no help from GDP figures which showed economic growth at 0.3% in the second quarter.

In London, WPP was the most prominent among the movers as it recovered earlier losses to rise 9.25p to 579.25p, despite reporting lower revenues and profits in the first half.

Investors were cheered by upbeat comments from the advertising industry leader which stuck by hopes for a market recovery next year.

That provided a boost to other media stocks with Reuters ahead 5.5p to 265.5p and Financial Times owner Pearson 2.5p stronger at 627.5p.

Granada and Carlton, who will discover the outcome of a Competition Commission review into their merger next month, rose 1.25p to 106p and 3p to 179p respectively.

Financial stocks were also holding firm with HBOS up 8p to 736p, Royal Bank of Scotland ahead 20p at 1629p and HSBC 6.5p brighter at 815.5p.

But engineering group GKN topped the list of Footsie risers after agreeing to sell its 29% stake in Alvis to BAE Systems for £73 million. GKN lifted 4% or 10.25p to 261.25p while BAE rose 2.75p to 169p.

InterContinental Hotels also added 0.75p to 509.75p with the news that it plans to sell prestigious London May Fair Hotel.

Elsewhere, mobile phone firms were out of favour with Vodafone falling 0.5p to 119.25p while mmO2 led the fallers board with a 1.25p drop to 53.75p.

Outside the Footsie, construction services group Keller lost earlier gains to stand 1.5p lower at 248.5p after failing to meet ambitious growth targets in the first half.

But the company did look to reassure investors by saying it remained confident of achieving strong annual growth.

Energy group International Power slipped almost 4% or 5.75p to 148.75p as Anglo-Australian mining group BHP Billiton tabled an offer trumping its bid for Drax, the UK’s biggest power station in North Yorkshire.