London bounces back to close higher

The London market shrugged off uncertainty over yesterday’s attacks in the capital to end the week in positive territory.

Shares dipped after news that police had shot dead a man at a Tube station in the capital, but the FTSE 100 Index later recovered to close 20.2 points higher at 5241.8.

Takeover talk surrounding catering group Compass and BPB – which emerged as a potential target for French glass maker Saint-Gobain yesterday – boosted sentiment.

Telecoms giant Cable & Wireless also made strong progress after confirming its interest in buying smaller rival Energis.

Shares in C&W lifted 2.25p to 151.25p after it said it had approached the stakeholders of Energis over a possible acquisition, but added there was no certainty a deal would be struck.

But insurers were heading in the opposite direction as investors worried about the possible impact of terror attacks on the industry.

Aviva was the third heaviest Footsie faller, off more than 1% or 7.5p to 631.5p, while Legal & General lost 1.25p to 114.25p and Old Mutual slipped 0.75p to 129.5p.

Retailer Boots was also downbeat despite a positive note from JP Morgan, saying its recovery was on track. The stock weakened 9.5p to 606p.

But it was beaten to the top of the Footsie fallers board by International Power, off 3.75p to 206.25p as the sector continued to suffer the effects of lower gas and electricity prices.

Fashion chain Monsoon was in better form – rising nearly 8% or 27.5p to 387.5p, after saying it was in talks with its founder about a possible bid for the remaining shares he does not already own.

The highest Footsie risers today were BPB up 45p to 693.5p, Compass rising 11.5p to 252.5p, O2 up 5.75p to 144.5p and Man Group up 62p to 1581p.

The heaviest fallers were International Power losing 3.75p to 206.25p, Boots down 9.5p to 606p, Aviva off 7.5p to 631.5p and Sage Group down 2.5p to 224.25p.