FTSE breaches 5600 barrier

The FTSE 100 Index briefly rose above the 5600 barrier today as investors continued to build up hopes for a strong 2006.

London’s index of 100 leading shares peaked at 5608.2, the first time the market has achieved this level for more than four years.

It failed to stay there however, as low trading volumes and a lack of corporate news caused the top flight to slip back. In a shortened session because of the Christmas holiday, the Footsie was 3.3 points lower at 5593.7 by mid-morning.

Marks & Spencer was one of the highlights of the session as shares crept ever closer to the £5 mark. With analysts confident of a strong Christmas for the retailer, shares stood 4.25p at 497.5p.

Drugs giant AstraZeneca was another riser after it said it was buying Cambridge-based cancer treatment research firm KuDOS Pharmaceuticals for around £121 million. Shares stood 21p higher at 2799p, in contrast to GlaxoSmithKline which slipped 9p to 1459p.

Elsewhere, BAE Systems found itself in negative territory after hitting a three-and-a-half year high yesterday.

Shares in the defence and aerospace giant have soared in recent days after an agreement between the UK and Saudi Arabia over new Eurofighter planes looked set to land the company its biggest deal in 20 years. The stock rose early in the session but later stood 2.25p lower at 382.75p.

The session also saw the return of online retailer ASOS after it was forced to suspend its shares in the wake of the Buncefield oil depot fire.

It said profits remained in line with expectations as it was fully insured, while the business should be fully operational by mid-January. The disruption caused shares to initially fall 8% but investors sensed a buying opportunity to leave the stock 3% or 2p lower at 75.5p.