Footsie breaks 5400 barrier

A bumper crop of corporate results sent the FTSE 100 Index soaring above the key 5400 mark today.

Boosted by news from some of the UK’s biggest stocks, the Footsie lifted 73.3 points to 5431.9 – just two weeks after languishing below 5150.

With just a handful of top flight stocks in negative territory, the focus was on significant gains by the likes of chemicals giant ICI and sugar producer Tate & Lyle.

Progress by New York shares added to the upbeat mood, as the Dow Jones Industrial Average also notched up around 70 points by the close of trading here.

ICI was the toast of investors s it led the charge in London following news that its profits and sales had grown faster than the City expected over the summer. ICI saw more than 6% added to its market value, rising 19.25p to 313.25p.

Sugar and starch manufacturer Tate & Lyle followed it upwards as it posted a forecast-busting 7% rise in first-half profits to £136 million. Shares in the company – which said full-year results should be satisfactory in spite of rising costs – were also up 6% or 28.75p to 499.75p.

And pest control-to-hygiene firm Rentokil Initial added to the enthusiasm by providing some much-needed good news, despite a £10 million bill to fight off takeover interest from former Granada boss Sir Gerry Robinson.

Shares rose 4% or 6.75p to 156.75p as traders warmed to third quarter results which were more upbeat than the City expected, with a 5.3% growth in revenues and a slower rate of decline in profits.

But there was little sign that Unilever was turning its business around, with sales falling 2% in Europe during the third quarter after the consumer products giant cut the prices of its products to defend market share.

Unilever was the day’s biggest loser among elite stocks – down 3% or 20p at 560.5p.

There was mixed feelings in the online gaming sector after poker giant PartyGaming set its sights on smaller player Empire Online. Shares in PartyGaming edged up 0.25p to 93.25p, while Empire shares fell 2p to 113.5p.

Among smaller firms, retirement homes group McCarthy & Stone reported a 14% fall in annual profits as it suffered in the toughest housing market in years, causing its stock to slip 5% or 35p to 615p.

Rival Redrow also retreated 8.25p to 447.5p, but Taylor Woodrow and Bellway managed to buck the trend, up 2p and 5p to 334.25p and 913p respectively.

Other risers outside the top flight included Business Post amid renewed takeover speculation. Shares were up 10% or 35p to 400p.

And on its first day as a listed company, Pizza Express owner Gondola Holdings rose from its opening price of 320p to 326p in conditional dealings.

The highest Footsie risers today were ICI up 19.25p to 313.25p, Tate & Lyle rising 28.75p to 499.75p, Rentokil up 6.75p to 156.75p and Amvescap rising 15.75p to 376.25p.

The heaviest fallers were Unilever down 20p to 560.5p, Imperial Tobacco off 12p to 1627p, National Grid down 3.5p to 515p and O2 losing 0.5p to 197p.