BSkyB helps FTSE close high

The FTSE 100 Index built on its recent winning streak today to end the week at another 29-month high.

Media stocks powered ahead – led by pay-TV company BSkyB – to help the Footsie close within a whisker of the 4800 barrier, 17 points higher at 4793.9.

Lower oil prices and a good performance by markets across the Atlantic have boosted London shares in recent weeks and pushed the Footsie to levels not seen since June 2002.

By the end of trading in London, the Dow Jones Industrial Average was a few points higher than Thursday, when it closed at its highest level since June.

It came as the price of a barrel of oil in New York remained under 48 US dollars, far lower than its recent record high of more than $55.

In London, better-than-expected subscriber figures from BSkyB lifted the stock 4%, making it the second highest riser of the session. Shares advanced 22p to 554p, after news that it had attracted 62,000 new subscribers in the three months to September 30.

Media stocks dominated the risers board after the news, helping rival ITV to move to third in the Footsie risers with a 3.75p gain to 113.25p.

Speculation that ITV could be about to raise more than £60m (€85.9m) from the sale of a special effects company also drove the broadcaster’s shares.

Elsewhere in the media sector, Financial Times owner Pearson cheered 17p to 640p, Daily Mail & General Trust lifted 10.5p to 760.5p and WPP Group gained 6.5p to 587p.

Blue-chip heavyweight Vodafone was also helping to keep the top flight in positive territory, lifting 1.25p to 141.75p.

Abbey National shares made progress – up 4p at 643.5p – on the last day before its takeover by Spanish bank Santander is completed. The mortgage lender is delisting after 15 years on the London Stock Exchange.

Other financial stocks were in the money, with Friends Provident up 3.75p to 146.5p, Legal & General lifting a penny to 106.75p and Aviva adding 5.5p to 583.5p.

However, Royal & Sun Alliance, which yesterday lost ground despite reporting a substantial rise in nine monthly operating profits to £453m (€648.5m), continued its slide with a further 2% or 1.75p loss to 74.5p.

Outside the top flight, online auctioneer QXL Ricardo saw its share price surge 64% – 212.5p up at 540p – after it confirmed it was in takeover talks.

But half-year results put the brakes on recent gains by model railways and Scalextric group Hornby.

The stock fell 6p to 278p as investors chose to overlook a 20% rise in profits to £2.6m (€3.7m) in the six months to September 30.

United Utilities weakened 7p to 549p, despite saying its outsourcing arm Vertex had won a contract worth up to £427m (€611.3m) from a local authority.

The biggest Footsie risers were Amvescap up 14.5p to 327.75p, BSkyB ahead 22p at 554p, ITV up 3.75p to 113.25p and Man Group ahead 39p at 1342p.

The heaviest fallers were Scottish Power down 10p to 398p, Royal & Sun Alliance off 1.75p to 74.5p, Scottish & Southern Energy down 17p to 790p and Hays off 2.5p to 125p.