Sainsbury's speculation sends FTSE climbing

The London market started the week on a high note today as rumours that a bid could be on the cards for Sainsbury’s drove the stock higher.

The retailer was the highest riser in the FTSE 100 Index after climbing nearly 3%, helping the Footsie add 32.6 points to stand at 4656.8 by mid-morning.

The rise came despite pressure from higher oil prices – back above $52 a barrel – and uncertainty over the US Presidential election.

In London, Sainsbury’s added 7.5p to 265.25p after reports said former Asda boss Allan Leighton was set to lead a takeover bid for the struggling chain.

Other stocks boosting the Footsie included mining groups, which were next on the risers board behind Sainsbury’s. BHP Billiton lifted 14p to 567.5p, Anglo American rose 23p to 1217p and Xstrata advanced 15p to 860p.

On a slow day for corporate news, only a handful of companies were in negative territory. The heaviest faller was personnel group Hays, off nearly 7% or 9p to 119.75p as it confirmed it had demerged its mail business.