Footsie ends week on positive note

The FTSE 100 Index ended a choppy week in positive mood today as it broke through the 5200 barrier buoyed by a strong session on Wall Street and impressive gains by drugs giant GlaxoSmithKline.

Glaxo surged for the second straight session to its highest close since mid-2002 as investors continued to warm to its third quarter results.

Encouraged by Glaxo and gains of nearly 70 points on Wall Street, the Footsie closed 30.6 points up at 5213.4.

It was a turbulent end to a turbulent week for the Footsie as it fell 25.2 points in early trading but later recovered as it found support across the Atlantic.

The Dow Jones Industrial Average rallied following solid interim results from Microsoft and a far better than expected US GDP reading.

Back in London, Glaxo ended the day 36p up at 1473p, but its performance appeared to encourage investors to switch out of rival AstraZeneca, whose shares slipped 15p to 2485p in the wake of its own third quarter results yesterday.

The day’s biggest riser was Smith & Nephew, with shares up 4%, or 17.5p to 483.5p, as traders warmed to yesterday’s results which were better than the September profits warning had suggested.

Vodafone also ended the day ahead after buying a 10% stake in India’s largest mobile phone operator Bharti, which owns the Airtel brand. Shares were up 2.5p to 143.5p, while telecoms rivals O2 and BT were ahead 4.25p each to 164.25p and 206.75p respectively.

Oil majors Royal Dutch Shell and BP were in the black – both up around 1% - but smaller rival Cairn Energy was among the Footsie fallers as traders reacted to reports of a production halt at its Sangu field in Bangladesh. Shares were 17p lower at 1673p.

Other notable fallers included Prudential, off 5.5p to 463p as sentiment remained against chief executive Mark Tucker in the wake of his strategy update earlier in the week.

The day’s biggest faller was Rentokil Initial, which recently fended off interest from former Granada boss Sir Gerry Robinson. Shares were down more than 2% or 3.75p to 150.25p.

Updates from advertising group WPP and Argos owner GUS did little for their shares today as they both lost 1.5p. WPP stood at 551p after confirming market-beating revenue forecasts for the year, and GUS was lower at 827.5p following its decision to dispose of Dutch home shopping operation Wehkamp for £265 million.

One of the most significant developments came in the FTSE 250 Index after shares in Mr Kipling owner RHM crumbled 8% or 25p to 265p in the wake of its warning that half-year sales of cakes were expected to be 12% lower.

Hotels group De Vere moved in the opposite direction, rising 26p to 590p, following a report in the Financial Times that it has attracted takeover interest from two private equity firms.

The top flight’s biggest risers were Smith & Nephew up 17.5p to 483.5p, O2 ahead 4.25p to 164.25, Centrica up 6p to 235p and GlaxoSmithKline up 36p at 1473p.

The heaviest fallers were Rentokil Initial down 3.75p to 150.25p, Reckitt Benckiser down 35p to 1668p, Schroders off 12.5p to 827.5p and Anglo American down 24p to 1633p.