Top company optimism boosts London market
A host of updates from blue-chip companies lifted the London market today as it continued to recover from its recent nine-month low.
The FTSE 100 Index – which closed below the 4300 barrier for the first time since last October on Monday – added to yesterday’s gains by ending the session 31.3 points higher at 4356.2.
The upbeat sentiment came despite losses across the Atlantic, where the Dow Jones Industrial Average was more than 50 points in the red by the close of trading in London.
At home, results from a range of blue chip companies were giving investors food for thought.
Halifax-to-Bank of Scotland group HBOS was among the highest climbers, gaining 19p to 694p after delivering interim profits in line with expectations and pointing to a “strong outcome for the full year”.
Most other financial groups were enjoying gains, with Barclays ahead 10.5p to 461p and Royal Bank of Scotland advancing 31p to 1548p.
Abbey National, which is the subject of an £8bn (€12.1bn) offer by Spain’s Banco Santander Central Hispano, recovered earlier losses to stand 5.5p higher at 572.5p.
Gas exploration and production firm BG Group was the second highest riser, posting a 12% hike in half-year profits after it benefited from the recent surge in oil prices. Shares added 11.75p to 341p.
Oil giants BP and Shell were both more than 1% higher as the price of a barrel of crude in New York moved close to recent record highs. BP was 9p ahead at 497.75p and Shell was up 5.5p at 390p.
Directories group Yell was also in upbeat form after turning in a profit for the first quarter. Shares advanced 3p to 332p.
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 21.5p to 485.5p.
Outside the top flight, sugar and starch group Tate & Lyle added 12.5p to 320p as unexpectedly high demand for no-calorie sweeteners and a fall in crop prices led it to raise expectations for profits.
In contrast, housebuilder George Wimpey was 3.75p lower at 364p despite unveiling a 29% rise in half-year profits to £158.5m (€239.6m).
Motoring services group RAC was also in the doldrums, down 45p to 680p, 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 1.25p to 381.25p 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 4.25p to 136.25p after reporting another sharp rise in revenues as it recruited more customers to its TalkTalk home phone venture.
The highest Footsie risers today were Carnival up 98p to 2628p, BG Group ahead 11.75p to 341p, Reuters up 10p to 317p and Old Mutual ahead 3p to 105.25p.
The heaviest fallers were Man Group down 94p to 1272p, Unilever off 21.5p to 485.5p, Scottish & Newcastle down 14.75p to 404.5p and Rexam off 10p to 419p.
