FTSE climbs close to 5600 barrier

Leisure group Hilton was the toast of the London market today as investors cheered news that it had received expressions of interest in Ladbrokes.

Confirmation that firms were considering a £3bn (€4.4bn) punt on the betting shop chain sent Hilton shares 3% higher.

This made it the second highest blue-chip riser on a day when the FTSE 100 Index climbed 4.5 points to 5591.9 by mid-morning – keeping it at a four-year high following a jump of almost 40 points last night.

Hilton’s rise of 11p to 368p was beaten only by BAE Systems, as investors continued to pile into the stock following yesterday’s news of a deal that will see its Eurofighter jets replace the Tornado for the Saudi Arabian air force.

BAE shares put on 6% in the previous session and were ahead another 4% or 15.75p to 385.75p today.

But retailer Boots proved a drag on the market after a study from market research firm Verdict warned its share of the health and beauty market tumbled to its lowest level for eight years. The stock slipped 4p to 606p.

Other retailers lost gains prompted by upbeat comments about festive trading from the CBI yesterday. B&Q owner Kingfisher weakened 2p to 235.75p while supermarket group Morrisons lost 1.25p to 188.75p.

Outside the top flight, there was positive news in the housebuilding sector as an upbeat trading statement from Wilson Bowden lifted its shares 7% or 97p to 1487p.

It was followed at the top of the FTSE 250 risers board by a string of other housebuilders, with McCarthy & Stone up almost 5% or 28.5p to 648.5p, Bovis Homes adding 34p to 775.5p, Taylor Woodrow up 15p to 377.25p and Barratt Developments cheering 39p to 1006p.