FTSE fights back

The FTSE 100 Index has staged a fightback to reach lunchtime up 10.6 points at 4238.8.

Shares in London were given a bumpy ride, with the blue chip index falling back from a strong start to reach mid-morning 27 points into negative territory.

But with traders expecting only small movements on Wall Street later in the session, the mood in London recovered.

The biggest riser on the FTSE 100 was broadcaster BSkyB, which climbed 15.5p to 637p as the company allayed fears in the City that it was about to parachute Rupert Murdoch's son James into the chief executive's position.

Following the announcement of Tony Ball's departure today, BSkyB said its independent directors would meet to recommend a successor.

But in a mixed session for media stocks, magazines and radio group Emap headed the fallers board, shedding 30.5p to 827p despite forecasting a 3% rise in revenues for the six months to September 30.

And global information provider Reuters climbed 1.25p to 237.25p after unveiling plans to relocate most of its London staff to a single site in Canary Wharf, in a move expected to save £5 million a year.

On the downside, insurer Royal & Sun Alliance eased 0.25p to 91.5p as the impact of a rights issue, following its approval by shareholders yesterday, hit the value of the stock. But the fall represented a recovery from a more severe drop earlier in the session.

Plant hire business Wolseley surrendered much of its early gains after announcing record annual profits of £455.9m (€657m), - despite mixed economic conditions in the US and mainland Europe. Shares, which had been 8.75p ahead in the first hour, later stood 1p stronger at 717.25p.

Outside the top flight, computer games retailer Game rose 2.25p to 62.5p following the fourth half-year profit in its history and optimistic comments about Christmas trading.