Footsie up as Bush secures second term

Insurers and drugs companies were among the winners today as businesses cheered President Bush’s success in the US presidential election.

Although markets across the Atlantic soared, the FTSE 100 Index was cautious in its response amid earlier uncertainty over the outcome.

The Footsie ended the session 25.3 points higher at 4718.5 – close to last month’s peak of 4732.9 – just as it was confirmed George Bush had won a second term in office.

The prospect earlier in the day of a potential Democrat challenge to the result over the Ohio vote had fuelled market uncertainty in London.

In contrast, the Dow Jones Industrial Average surged around 140 points higher by closing time in London.

Experts said the result was largely positive for big business and the financial markets.

Paul Webb, a trader at deal4free.com, said: Shares on both sides of the Atlantic now look set to enjoy a buoyant run towards the weekend.”

In London, the biggest climber was drugs company AstraZeneca, nearly 3% higher after rising 62p to 2319p. GlaxoSmithKline was also in upbeat form, cheering 23p to 1193p.

Fellow medical group Smith & Nephew was also up 5p to 468.5p due to expectations that it would announce third quarter pre-tax profits of £65 million tomorrow.

Insurer Royal & Sun Alliance was another big riser, adding 1.5p to 77.75p, while Prudential lifted 5.75p to 415.75p and Legal & General advanced 1.5p to 103.5p. Insurers preferred a Bush victory as Republicans favour legal reforms that would affect future asbestos litigation and class-action lawsuits.

A lift in the price of a barrel of crude oil back towards the 50 US dollars level boosted oil giants BP and Shell, up 0.5p and 3p to 533p and 430.75p respectively.

But defence giant BAE Systems was the heaviest faller – off 7.5p to 238p - after two people were arrested during searches by Serious Fraud Office investigators probing the suspected false accounting of contracts.

Most corporate news today was coming from outside the top flight, with bus and rail operator FirstGroup 7% higher – up 20.25p to 308.75p – as it turned in a 9% rise in half-year profits to £62.1 million.

Shares in glass maker Pilkington rose nearly 5%, up 4.25p to 94p, after a surprise increase in profits was accompanied by an upbeat assessment on prospects.

Robert Wiseman Dairies lifted 11.5p to 236.5p after reporting a 12.2% increase in profits, although it said higher raw material prices would cost it more than £1 million in the second half.

But Carphone Warehouse weakened 7p to 160p despite posting profits ahead of expectations as it said it was benefiting from a “buoyant” mobile market.

The highest risers in the Footsie today were AstraZeneca up 62p to 2319p, Hanson rising 8.25p to 420p, Royal & Sun Alliance up 1.5p to 77.75p and GlaxoSmithKline rising 23p to 1193p.

The heaviest fallers were BAE Systems off 7.5p to 238p, Centrica falling 4.25p to 238.75p, Reuters off 6p to 367.75p and William Hill down 6p to 500p.