FTSE regains upward momentum

Healthy gains from some of the London market's highest profile sectors has helped the FTSE 100 Index resume its upward path.

Amid a quiet start to the week for corporate news, the Footsie climbed back towards its one-year high, standing 26.5 points stronger at 4264.3 by lunchtime.

The mood was shared across European markets as some upbeat broker comments helped lure investors back into buying mode.

Major risers included defence group BAE Systems, up 5.75p to 181.25p following a broker upgrade, while insurers Royal & Sun Alliance and Legal & General gained 4.5p and 2.5p to 119.5p and 100.5p respectively.

Among the banks, Lloyds TSB lifted 8p to 441p, HBOS rose 12.5p to 728p and Abbey National added 7.75p to 535.5p.

Press speculation over a possible US interest in a future combined ITV helped lift shares in the major franchise holders Granada and Carlton.

Granada rose 3.5p to 100.25p while merger partner and FTSE 250-listed Carlton gained 8p to 170p as the pair also benefited from positive comments by Ulster Television about the ITV advertising market.

Ulster posted more modest gains of 2.5p to 322.5p after half-year turnover rose 14% and underlying operating profits remained unchanged at £7 million.

Only a handful of Footsie stocks were in negative territory, with oil companies Shell and BP bucking the upward trend with falls of 1.75p and 3p to 396.75p and 435.75p respectively.

Outside the top flight, speculation over possible bid interest at Manchester United boosted demand in the club's shares.

Despite a statement to the Stock Exchange denying that it had received any approaches, shares in the Premiership club surged 5% or 7.75p to reach 175.75p.