Footsie closes above 4700 mark

The London market survived a late frenzy of profit-taking to end the trading week above the 4700 mark today.

With just minutes left in the session, the Footsie slipped into the red but recovered to close 11.5 points higher at 4729.8.

That represented the fifth positive session in a row and a new 28-month high, with analysts tipping the Footsie to make further progress during the remaining weeks of this year.

Shares received a boost from the United States where 337,000 jobs were created last month – more than double the increase in September and higher than the 180,000 forecast by the market.

The improved picture of the US economy added to the rosy glow provided by the victory of George Bush in the presidential elections earlier this week.

Oil prices continued their downward trend today with the cost of a barrel of crude falling below 49 US dollars as fears of supply shortages in winter recede.

As a result, the Dow Jones Industrial Average moved more than 45 points higher in early trading today to build on the 170-point gains logged last night.

British Airways was the highest flier in London as investors looked forward to a positive first-half performance when its results are announced on Monday. Shares cheered more than 4% or 9p to 224.5p in anticipation of profits of £275 million and following the latest slide in oil prices.

Telecoms stocks also drove the Footsie forward with Cable & Wireless rising 2% or 2.25p to 107.75p on reports that it will unveil changes to its UK management team next week. BT was ahead of it on the risers board, up 4.25p to 192.25p.

Shire Pharmaceuticals recovered from heavy falls sparked by disappointment at yesterday’s 8% hike in profits to advance 2.25p to 522p.

In contrast, the fall in crude dented oil stocks, with BP off 4.5p to 537.5p and rival Shell 1.5p lower at 434.25p. Cairn Energy was the heaviest faller with a drop of 34p to 1461p.

Most corporate news came from outside the top flight, with low-cost airline easyJet 4.75p higher at 176.5p after saying it carried 2.4 million passengers last month.

A rise in third quarter profits before tax and exceptionals to £22 million from £5 million last time boosted electronics and ceramics group Cookson, which was 0.75p higher at 35.25p.

But energy group International Power fell 1.75p to 155.5p as it unveiled a drop in third quarter profits despite a strengthening in forward power prices in the UK.

Furniture retailer MFI continued to benefit from speculation that a takeover bid could be on the cards, with possible buyers thought to include Kingfisher and GUS.

Shares cheered 6.25p to 114.25p as analysts speculated that the Howden joinery business was worth £1 billion after accounting for its pensions deficit – before the value of the core MFI chain is assessed.

The biggest Footsie risers were British Airways up 9p to 224.5p, Hanson rising 11.5p to 428p, Morrisons up 5.5p to 234.25p and BT Group rising 4.25p to 192.25p.

The heaviest fallers were Cairn Energy down 34p to 1461p, Severn Trent off 16p to 915p, BG Group down 5.25p to 354.75p and Northern Rock off 9.5p to 731p.