FTSE gains ground

The London market made healthy gains today as leading shares recovered some of their poise at the end of another lacklustre week for investors.

By mid-morning, the FTSE 100 Index was 26.3 points higher at 4911.2, leaving the top flight just short of the level at which it started the week.

The improvement came despite a weak session for the Dow Jones Industrial Average and the Nasdaq completing its weakest quarter in four years.

In London, oil giants BP and Shell – accounting for a large chunk of the value of the Footsie – were both in positive territory after a report from Goldman Sachs warned the cost of crude could surge as high as 105 US dollars a barrel.

BP lifted by 1%, up 7p at 555.5p, while Shell was ahead 2.5p at 477.5p.

Miners were also doing their best to lift the market in a session featuring few corporate announcements.

BHP Billiton was near to the top of the Footsie risers board, ahead 10.5p at 721.5p, while Anglo American cheered 11p to 1266p.

One of the most notable moves of the session came from FTSE 250 transport group Go-Ahead, down 7% or 105p at 1360p, after it failed to make the shortlists for the Thameslink and Greater Western franchises.

Rival operators National Express and Stagecoach both progressed to the next stage on both franchises, leaving shares in National 3.5p higher at 906p but Stagecoach down half a penny at 110p.

Somerfield shares were also closely watched after rising to a new record as investors eyed the prospect of a lucrative three-way bidding war.

The chain announced last night it would talk to interested parties, while it also emerged that Iceland-based investor Baugur had returned to the fray with a new and updated proposal. Somerfield shares were 2.5p higher at 212.25p.