Footsie up despite US losses

The London market looked on track for a positive end to the week today after shrugging off last night's heavy losses in New York.

Although the FTSE 100 Index spiralled into the red in the first hour of business, it recovered to stand 20.6 points higher at 4719.3 by mid-morning.

Strong gains by heavyweight pharmaceutical stocks contributed to the upbeat mood, while a slight easing in the price of oil also pleased investors.

Analysts had feared a 1% fall in the value of the Dow Jones Industrial Average last night and a double bomb blast at a luxury hotel in Egypt would dent the Footsie’s progress.

In London, pharmaceuticals companies started to regain some of the losses chalked up in recent days, with Shire Pharmaceuticals rising 11.5p to 524p and GlaxoSmithKline adding 25p to 1177p.

Oil giants BP and Shell were both in positive territory despite an easing in the cost of a barrel of crude in New York to just above 52 US dollars. BP lifted 3p to 557.5p and Shell advanced 2.5p to 424.75p.

But media group Reed Elsevier was near the top of the Footsie fallers board after a broker downgraded its price target for the stock. Shares fell 10.5p to 497.5p.

Outside the top flight, washroom specialist PHS disappointed investors despite a trading update forecasting an 11% rise in profits. Concern over margins caused PHS shares to fall 4.75p to 71.25p.

Back in the Footsie, fellow office services group Rentokil Initial was also in the red, down 1.25p to 153p.

Elsewhere, logistics group Christian Salvesen edged ahead half a penny to 61.25p following its statement that half-year results would be in line with expectations.

Engineering group GKN weakened 2.75p to 217.5p after confirming plans to return cash to shareholders following the sale of its stake in helicopter maker AgustaWestland.