Financial heavyweights boost FTSE

Heavyweights in the financial sector were providing the London market with momentum today as investors reacted favourably to the succession plans at HSBC.

The news that HSBC had found a replacement for chairman Sir John Bond from within its ranks helped shares in the bank to improve by 9p to 950p.

And with the likes of Legal & General and Barclay joining it on the risers board, the FTSE 100 Index kicked ahead by 19.2 points to 5543 by mid-morning.

Legal & General was the session’s top riser on a positive day for insurers, adding 2.5p to 116.75p to outpace Prudential and Aviva which rose 6.5p and 8.5p to 537p and 705p respectively.

In the banking sector, Royal Bank of Scotland was 7p stronger at 1704p and Barclays was 4p ahead at 607.5p although both lagged the improvement by HSBC.

There was little in the way of other corporate news in the top flight so Homeserve and Blavod Extreme Spirits were among smaller firms taking the results spotlight today.

Homeserve, which specialises in emergency repair services, proved the main success story of the session, with its shares at the top of the FTSE 250 Index risers board after a gain of 10% or 105p to 1136p.

The improvement reflected an 18% rise in half-year profits to £10.8m (€15.8m) - in line with expectations – while the company sounded an upbeat note on the second half, which is traditionally its busiest.

Blavod fared less well, even though operating losses reduced to £1.6m (€2.3m) and turnover increased by 140% to £2.2m (€3.2m). Shares lost some of their recent sparkle to stand 8% or 3p lower at 33p.

Investors also latched on to weekend media reports that private equity firms may be circling radio group Gcap Media following its shock change in strategy last week.

Shares in GCap have fallen heavily for the past two sessions, but were ahead by 4% or 11p to 279p today.