Standard Chartered investors good news for FTSE

Investors speculating on a takeover of Standard Chartered sent shares in the bank to a record high and helped London's FTSE 100 Index to rack up fresh gains today.

Reports that US financial heavyweights were lining up a bid for Standard had their followers in the City as twice the usual amount of shares in the London-listed firm changed hands.

The activity took place even though the rest of the banking sector barely moved and contributed to the Footsie closing 29.2 points higher at 5740.2.

Standard has long been touted as a takeover target because of its strong presence in fast-growing Asia, but analysts said its recent rally and today’s gain of 76p to 1401p could prove too expensive for potential predators.

Anglo American was also in the spotlight as investors took a punt on a possible break-up, with advisers believed to have been appointed to handle the sale of its packaging business Mondi.

That raised hopes of other disposals, lifting Anglo by 4p to 1995p and pushing a clutch of rival stocks in the same direction, including a rise of 28p to 1470p for Xstrata.

Energy giants BP and Royal Dutch Shell added weight to the market after oil prices remained close to the 64 US dollars a barrel mark. BP was up 11.5p at 666p while Shell stood 23p higher at 1952p.

The gains extended to the second tier as Burren Energy rose 4% after announcing the expansion of its exploration activities into Yemen and the Oman. Shares were up 40.5p to 1075p, while Tullow Oil cheered 12p to 302p.

Elsewhere, Dixons and Currys owner DSG International was at the top of the Footsie fallers board as investors showed nerves ahead of a Christmas trading update scheduled for Wednesday. Shares were off 2.25p at 165p.

Woolworths, which is due to issue a statement on the same day, fell 0.75p to 37p in the FTSE 250 Index, while top-flight rival Next dipped 11p to 1684p. In a poor session for the retail sector, Tesco also dipped 0.5p to 318p and JJB Sports fell 2.25p to 169p.

One of the heaviest falls came from Vodafone, down 1.5p to 126p, after investors lost the right to the latest dividend payment.

Among companies with corporate news, Aga Foodservice lifted 4p to 332p after announcing that a strong first half of the year had been followed by further progress in the second half.

Shares in Theo Fennell sparkled – up more than 6% or 2.5p to 41.5p – after the celebrity jeweller reported like-for-like sales growth of 32.7% between December 1 and Christmas Eve, which the company put down to demand for its exclusive Art and Trellis collections.

The highest Footsie risers today were PartyGaming up 8.75p to 149.25p, Standard Chartered rising 76p to 1401p, Prudential up 14p to 575p and BAE Systems rising 8p to 418.25p.

The heaviest fallers were Reuters off 8.25p to 429.5p, DSG International down 2.25p to 165p, Vodafone off 1.5p to 126p and Persimmon down 14p to 1225p.