Late rally puts FTSE into positive territory

London shares benefited from a late rally today as investors pinned their hopes on a decisive outcome to the US presidential election.

Despite trading in a narrow range for most of the session, the FTSE 100 Index ended the day 19.4 points higher at 4693.2, adding to yesterday’s strong gains.

The Footsie was boosted by a positive mood across the Atlantic, where traders shrugged off fears over the outcome of the poll. This left the Dow Jones Industrial Average 55 points higher by closing time in London.

There had been fears that another split vote, and the subsequent drawn out legal process, would be damaging for the economy.

Meanwhile, a fall in the cost of a barrel of crude back below the 50 US dollars level in the US was also giving traders food for thought.

Oil companies reacted negatively to the news, with Shell off 2.25p to 427.75p and Cairn Energy 7p lower at 1471p. But rival BP managed to buck the trend by rising 0.5p to 532.5p.

The retreat benefited British Airways as traders welcomed the potential impact on fuel prices. The stock was among the highest Footsie climbers with a rise of 2.75p to 218.75p.

Troubled retailer Sainsbury’s succumbed to profit-taking as investors collected gains achieved amid continued bid speculation. Its shares slipped 2%, making the group the second heaviest faller – off 5.5p at 261.75p.

In contrast, airports operator BAA advanced 2p to 575.5p after saying it remained on course for 6% annual growth in passenger numbers following a “robust” performance over the summer months.

Other news in the sector came from outside the top flight, as budget carrier Ryanair said profits after tax in the half year climbed 15% to a record €201.3m (£139.8m).

Ryanair said it remained cautious about the rest of the year, however.

Back in the top flight, financial stocks were also doing their best to prop up the market, with Barclays advancing more than 2% – 11.5p higher at 553.5p. It was followed by insurer Legal & General, which cheered 1.25p to 102p.

Elsewhere, Premier Foods was 2.25p higher at 224.75p after assuring investors that it could meet Christmas demand for family favourite Branston Pickle and other products made at its Bury St Edmunds plant after last week’s blaze.

But clothing retailer Matalan failed to cheer investors with news that like-for-like sales had resumed an upward path and profits had steadied. Shares weakened 2.5p to 225.25p.

Deodorant-to-washing powder maker McBride weakened 5.5p to 148p after saying first quarter trading had been in line with hopes despite the impact of rising raw material prices.

The highest climbers in the Footsie were Amvescap up 8p to 308.5p, Hilton rising 6.25p to 267.5p, Pearson up 13.5p to 614.5p and Cable & Wireless rising 2.25p to 107p.

The heaviest fallers were Smith & Nephew down 12.5p to 463.5p, Sainsbury off 5.5p to 261.75p, Marks & Spencer down 4.75p to 359.25p and BHP Billiton off 6.5p to 561p.