Good news cheers FTSE

London shares made healthy progress today as upbeat news from a host of blue-chip companies cheered investors.

The FTSE 100 Index shrugged off worries about interest rate hikes to move 34.4 points ahead to 4359.3 by lunchtime.

Halifax-to-Bank of Scotland group HBOS led the pack, gaining 26p to 701p after delivering interim profits in line with expectations and pointing to a “strong outcome for the full year”.

The Footsie’s positive performance reflected gains in New York last night, where the Dow Jones Industrial Average closed 123 points higher on the back of better-than-expected consumer confidence figures.

Further positive news was expected today in the US, with a report tipped to show that US orders for durable goods rose for the first time in three months in June.

Back in London, most other financial groups were enjoying gains, with Barclays ahead 10.5p to 461p and Royal Bank of Scotland advancing 30p to 1547p.

Abbey National, which is the subject of an £8bn (€12.1bn) offer by Spain’s Banco Santander Central Hispano, recovered earlier losses to stand unchanged at 567p.

Directories group Yell was another of the top performers after turning in a profit for the first quarter.

Shares advanced 5.75p to 334.75p.

Among those in the red, consumer products giant Unilever provided more disappointment on trading after sales of its leading brands failed to grow in the second quarter of 2004. Shares fell 4% or 23p to 484p.

Outside the top flight, sugar and starch group Tate & Lyle added 14.25p to 321.75p as unexpectedly high demand for no-calorie sweeteners and a fall in crop prices led it to raise expectations for profits.

In contrast, house-builder George Wimpey was 0.5p lower at 359.75p despite unveiling a 29% rise in half-year profits to £158.5m (€239.3m).

And motoring services group RAC was also in the doldrums, down 41p to 684p, even though it posted a 4% rise in half-year profits after boosting the number of motorists on its books to seven million.

Shares in building materials group Hanson dropped 6.5p to 376p after it said first half profits fell 26.4% in the face of a poorer UK infrastructure market, the weaker dollar and higher pension costs.

But telecoms group Carphone Warehouse gained 3% or 4p to 136p after reporting another sharp rise in revenues as it recruited more customers to its TalkTalk home phone venture.