FTSE in positive territory

The FTSE 100 Index continued its march towards the 6000 mark today as takeover activity in Europe boosted gas and electricity stocks in London.

The banking sector was also in positive territory despite a modest fall from Barclays after it posted a 15% rise in profits despite troubles at Barclaycard.

And with chocolate and drinks giant Cadbury Schweppes achieving its biggest sales growth in a over a decade, the Footsie gained 19.6 points to 5882.6 by mid-morning.

The electricity sector was the day’s top performer – up 3% overall – after German utility and Powergen owner E.ON made a £20bn (€29.1bn) offer for Spanish utility Endesa.

It sent stocks in London soaring as investors looked for further consolidation in the sector. International Power topped the blue chip risers’ board with gains of 4% or 10.75p to 285.75p, while British Gas owner Centrica was 11p ahead at 307p and Scottish & Southern Energy was up 33.5p to 1174p.

Online casino PartyGaming was also among the day’s biggest movers after ABN Amro upgraded the stock from hold to buy and raised its target price to 160p. The PartyPoker operator gained 3% or 3.5p to 122.25p, although smaller rival 888 Holdings was flat at 186p.

Cadbury Schweppes gained more than 2% after growth in new markets helped it deliver a 6.3% rise in sales to £6.51bn (€9.5bn) in 2005. It sent pre-tax profits up 12% to £873m (€1.28bn) and shares up 13p to 573p.

Financial stocks gave the London market further momentum despite Barclays slipping a penny to 643p after it unveiled annual profits of £5.28 billion but warned profitability at Barclaycard dropped 19% after a greater hit o bad debt levels.

Rival HBOS gained 2% or 16.5p to 1039.5p, while Alliance & Leicester was up 14.5p to 1135p and Royal Bank of Scotland was 20p ahead at 1808p.

Insurers were in good shape, with Prudential making gains of 3% or 16p to 621p and Royal & Sun Alliance up 2p to 128.25p, a gain of 2%.

But it was less good news for brewer Scottish & Newcastle as investors concentrated on tough market conditions ahead as opposed to a 9.5% rise in profits last year. Shares in S&N, whose brands include Foster’s and John Smith’s, fell 1% or 5p to 508.5p.

Elsewhere, George Wimpey gained 2p to 547p after it said a rally in the housing market at the end of 2005 was set to continue this year.