FTSE extends recent rally

The FTSE 100 Index extended its recent rally today after figures from some of the UK’s biggest firms drew applause in the City.

BAE Systems, ITV and Dixons were all in the results spotlight and prominent among the risers on the Footsie, which stood 6.1 points higher at 5365.3 by mid-morning.

That left the index just 12 points shy of its best closing mark for three and a half years, with sentiment also buoyed by triple-digit gains for the Dow Jones Industrial Average overnight.

BAE Systems was enjoying the biggest gains among blue-chip firms reporting results today – up almost 2% or 5.5p to 335.75p – as it impressed the City with a record order book and better-than-expected half-year earnings growth of more than 20%.

Broadcaster ITV matched BAE’s improvement – up 1.25p to 115.75p – after indicating an improved trend for its under-pressure advertising revenues.

Dixons was another riser, up 2.5p to 156.5p, as investors breathed a sigh of relief that an AGM statement did not reveal a poorer picture on sales. The like-for-like figure for the group was off 3%.

However, cigarettes giant Gallaher fell 2p to 856p as it reported another fall in the UK cigarette market and a 4% fall in half-year profits.

Outside the top flight, property group Savills gained 3% or 30p to 760p after forecasting a strong second half of the year.

Associated British Ports moved up 21p to 487.25p after it told investors that its UK ports business was set for further growth in the second half of its financial year, building on a 4.4% rise in underlying profits in the six months to June 30.

Investors in PartyGaming found some consolation in a 4% rise in shares of the online poker giant – up 4.25p to 109.25p today. The rebound came after more than £2bn (€2.9bn) was wiped off the value of the company yesterday.