US job figures encourage FTSE rise

Positive jobs figures from across the Atlantic helped the London market end the week on a high note today.

The better-than-expected data and falling oil prices contributed to the FTSE 100 Index closing 19 points higher at 4454.4.

The cost of crude continued to drop in the wake of production hikes by oil cartel Opec, bringing an end to the shadow sky high prices have cast over the market.

Investors were now looking ahead to next week’s interest rate announcement from the Bank of England.

One analyst warned: “Although many see it as unlikely, a decision by the MPC to hike rates to 4.5% would doubtless leave the index testing 4400 once again.”

New York’s Dow Jones Industrial Average was in similar upbeat form, ahead some 60 points by closing time in London.

On a slow day for corporate news in London the battle for control of Marks & Spencer kept investors interested.

The retailer strengthened 1.5p to 357.5p amid speculation that Philip Green may return with a higher offer after seeing his proposal knocked back yesterday.

Cable & Wireless took top spot on the Footsie risers board, however, as analysts continued to draw encouragement from the telecoms company’s upbeat annual results presentation earlier in the week. Shares were 3% or 3.75p higher at 131.25p – the highest level for two months.

B&Q owner Kingfisher also made further gains as investors continued to cheer its first-quarter figures unveiled yesterday, with shares improving 4p to 293p.

One of the major developments of the session involved UK tank maker Alvis, which was snatched from the clutches of General Dynamics by BAE Systems last night.

The offer of £355 million by BAE Systems – against £309 million by General Dynamics – helped fuel the Alvis share price, which surged more than 14% or 39.5p to 316p. BAE Systems was 1.5p lower at 211.5p.

Takeover talk was also swirling in the second tier with MFI up 2% or 3.25p to 159.25p after Evolution Beeson Gregory upgraded the stock to ‘add’ and said there was a 60% chance of a bid being made.

Speculation that Iceland-to-Booker firm Big Food Group was also the subject of a bid lifted its shares nearly 3% higher or 2.75p to 109p.

Elsewhere, shares in model railway maker Hornby raced ahead 27.5p to 1085p in the wake of a 20% rise in annual profits to £6.5 million and encouraging comments on future growth, particularly its European expansion.

Among other lower-flight stocks, chip designer Arm Holdings rose 2.5p to 122.75p as investors gained strength from a positive update overnight by US-based Intel, the world’s largest semiconductor company and a bellwether for the tech sector.

The biggest risers in the Footsie were Cable & Wireless up 3.75p to 131.25p, Aviva ahead 14.5p to 542p, Reuters up 9p to 372.75p and Xstrata ahead 16.5p to 694p.

The heaviest fallers were ITV down 2.25p to 114.75p, BP off 4.5p to 484.5p, Morrisons down 2p to 226.75p and National Grid Transco off 3.5p to 426p.