Top shares reach highest level for 19 months

Leading shares reached their highest level in 19 months today as merger and takeover speculation gripped the London market.

Possible bids for mobile phone group mm02 and emerging markets bank Standard Chartered pushed the FTSE 100 Index up 9.3 points to 4524.3, the highest close since July 2002.

This was six points clear of the previous peak of 4518 set in January.

The gains would have been higher had a disappointing opening to trading on Wall Street not dented investor confidence late in the day. Shortly after London’s close, the Dow Jones Industrial Average was 27 points adrift at 10591.

Stockbrokers said the Footsie could move higher later in the week, but added that investors might take the chance to pocket gains.

News that mm02 had received and rebuffed a takeover approach from Dutch operator KPN pushed shares in the mobile phone operator to the top of the Footsie risers board.

Standard Chartered ended the day near the top of the risers board following the death of its largest shareholder at the weekend, which analysts said may encourage banks to try to buy his shares.