Scottish Power lifts spirits on FTSE

The FTSE 100 Index moved closer to a new four-year high today after gains by stocks such as takeover target Scottish Power lifted spirits.

London’s top shares built on upbeat sentiment elsewhere in the world after the Nikkei rose sharply in the wake of the Japanese election.

The Footsie ended the session 15.8 points higher at 5375.1, just off last month’s high of 5377.5 – its best close since December 2001.

Scottish Power was one of the highest risers as investors speculated about the price that Powergen owner E.ON may offer for the utility following its disclosure last week that it was interested in the Glasgow-based utility. Shares advanced 13.75p to 569.25p, a rise of more than 2%.

Oil-dependent stocks British Airways and Carnival featured among the highest blue-chip climbers after the price of a barrel of crude fell to just above $63 in New York. Carnival was third on the risers board, adding 82p to 2914p, while British Airways advanced 4.25p to 291.75p.

Advertising giant WPP was also amongst those doing well as it benefited from a positive note from Morgan Stanley, lifting the stock more than 1% or 8p to 581.5p.

The gain was reflected across the rest of the media sector as Daily Mail & General Trust cheered 13p to 673.5p, ITV added 2p to 114p and BSkyB rose 4p to 579p.

Associated British Foods weakened as the session wore on, even though a spectacular sales performance from its Primark retail arm kept ABF on course to meet full-year results expectations. Shares were 13p lower at 832p by the end of the day, making it one of the heaviest fallers.

Aside from the healthy sales performance, AB Foods said it would keep more of the Littlewoods stores bought as part of a £409m (€606m) deal in July, costing more than originally thought in store investments.

There was also a drop of 2% for Friends Provident, off 4.5p to 173p as investors awaited half-year figures from the insurer tomorrow.

Outside the top flight, Bovis Homes led a clutch of housebuilders lower in the wake of a sharp fall in half-year profits.

With the results affected by a downturn in completions and average selling prices, Bovis added to the concerns with cautious comments about prospects for the market.

Shares fell 15p to 602p and were followed lower by rival Westbury, down half a penny to 450p, and Persimmon off 3.5p at 829.5p.

Elsewhere, Forth Ports jumped 3% or 43p to 1308p after pledging to drive its property portfolio in order to boost to shareholder value.

The highest Footsie risers today were Reckitt Benckiser, up 54p to 1808p, ICI rising 9p to 307.5p, Carnival up 82p to 2914p and Scottish Power adding 13.75p to 569.25p.

The heaviest fallers were Friends Provident down 4.5p to 173p, Associated British Foods off 13p to 832p, Alliance & Leicester down 10.5p to 855p and Legal & General off 1.25p to 112p.