Footsie rallies to finish on the up

A late rally triggered by a positive opening in the United States pushed London’s leading shares back above the 4200 barrier today.

After hovering just below the support level for most of the day, the FTSE 100 Index put on a final spurt to close 39.9 points up at 4209.1.

Trading on Wall Street opened in upbeat mood, with financial stocks leading the Dow Jones Industrial Average higher after Wednesday’s 194-point gain.

In London, banks and insurance companies also made steady progress as investors continued to celebrate this week’s upbeat news from the manufacturing sector in Europe and the US.

More positive economic data emerged in the UK today, with the buoyant construction sector showing a further marked expansion during September, growing for the 56th consecutive month.

On a slow day for corporate news, computing firm Sage Group topped the Footsie risers, gaining more than 6% or 10.5p to 175.5p, after a broker said a trading update on October 20 should confirm a robust performance in tough market conditions.

A confident third quarter trading statement from mortgage bank Northern Rock boosted its share price by 12p to 705p.

Unveiling plans to expand, the bank said lending to home buyers continued at record levels in the first nine months of 2003.

Other mortgage lenders also benefited, with Abbey National 6p ahead at 523.5p, Barclays 8.25p brighter at 493p, Lloyds TSB 10p richer at 437p and Halifax parent group HBOS up 7p at 723.5p.

Insurance companies were also benefiting from the positive mood, led by Friends Provident, which climbed 0.75p to 132.5p.

Legal & General got in on the act, rising 1.25p to 96.75p.

But Royal & Sun Alliance continued its yo-yo fortunes of late, losing an earlier 1.75p gain to end the day at the top of the Footsie fallers board, down 2.5p at 84p.

Brewing giant Scottish & Newcastle was third in the list of top flight losers as the market awaited news of the sale of its retail estate. Shares lost 6.75p to 360p

Meanwhile, pay TV group BSkyB added 3p to 617p after earlier losses sparked by European Competition Commissioner Mario Monti’s focus on its new TV rights contract to show Premiership matches.

Oil giant BP fell 1.5p to 420.5p despite signalling that profits are likely to increase in the third quarter due to higher oil prices. Blue chip rival Shell also shed 3.25p to 375.5p.

Outside the top flight, discount fashion retailer New Look dipped 2.5p to 313p after reporting a 3.6% fall in UK like-for-like sales in the first half.

And continued uncertainty dragged shares in troubled property group Canary Wharf down 3p to 269p amidst reports that takeover offers will not be tabled until next week.

The day’s biggest Footsie risers were Sage Group, up 10.5p at 175.5p, Amvescap rising 18p 485p, Hilton Group ahead 6.25p at 188.25p and Mitchells & Butlers 7.25p stronger at 236.25p.

The biggest fallers were Royal & Sun Alliance, down 2.5p at 84p, Shire Pharmaceuticals off 11.5p at 445p, Scottish & Newcastle 6.75p weaker at 360p and Sainsbury falling 4p to 270.75p.