FTSE moves onward and upward

London's top flight shares have continued their march towards a new one-year closing high.

The FTSE stood 27.8 points ahead at 4338.8 by mid-morning after a healthy start to the session for banking and insurance stocks.

A lack of major corporate news helped keep leading shares stable, with prospects of a strong start on Wall Street later today also cheering investors.

Analysts speculated about whether the strong-looking Footsie could reach the 4500 area eventually, saying that little profit-taking suggested more to come on the upside.

Among the financials, insurer Royal & Sun Alliance held onto its early top spot in the Footsie risers, advancing 3.5p to 93.75p. Prudential gained 6.75p to 444p and Aviva lifted 5.5p to 494.5p.

Allied Domecq provided the market with its only major blue-chip announcement after the drinks giant said it had pulled out of the running to buy Australian company Peter Lehmann Wines. With Allied selling its 14% stake in Peter Lehmann to rival bidder Hess, shares gained 5.25p to 376p after the news.

Media group Granada continued its ascendancy after last week's British government approval of its proposed merger with Carlton, gaining 2.5p to 115.75p. Shares in Carlton moved 2.5p ahead to 214p.

Outside the top flight, software group Misys fell 9p to 300.5p despite reassuring investors that the recall of defective healthcare products in the US would not have a financial impact.

Revolution vodka bars owner Inventive Leisure, which is listed on AIM, also saw its shares droop 1.5p to 134p after saying that like-for-like sales in the first three months of the new financial year had dropped 8.5%.

But shares in fellow AIM player Chepstow racecourse cantered 1.5p higher to 188p after Northern Racing, the UK's second biggest racecourse operator, completed a deal to add the circuit to its stable of eight tracks