Positive day for FTSE

The London market was enjoying a positive session today boosted by an announcement from Royal & Sun Alliance on its new cost savings target.

The FTSE 100 Index gained 50.9 points to 5648.3 by lunchtime as investors regained confidence following recent turmoil across global markets.

Royal & Sun Alliance was at the top of the leaders’ board with a gain of 4% or 5p to 128p after it said it would deliver savings of £70m (€103m) in the next two years in the UK and £130m (€191m) across the group. The insurer said it would axe 1,550 staff – including 1,000 in the UK – as part of its cost-cutting drive.

ITV was also in buoyant mood after it was named in reports as a possible takeover target. Shares in the broadcaster ticked 1.75p higher to 104.5p as investors welcomed speculation linking it with a possible bid from US-based private equity giant KKR, which is fronted by Lord Hollick.

Cruise giant Carnival has seen its shares take a battering in the last few weeks after it lowered its earnings forecast for 2006.

Carnival blamed rising fuel prices and weaker demand for Caribbean cruises - wiping 12% off the value of the company in one day – but shares recovered 2% today to stand 44p higher at 2161p after it announced a new 1 billion US dollar share buyback plan and said it was seeing a rebound in Caribbean bookings after slashing prices.

Associated British Ports lifted 1% or 10p to 879p as investors licked their lips as the battle for control of the UK’s biggest ports operator intensifies with reports of a new offer worth almost £2.7bn (€4bn).

Britannia Ports – a consortium led by Australian bank Macquarie – is said to be preparing to up the stakes by trumping the agreed offer made last week by Goldman Sachs of 840p a share, or £2.58bn (€3.8bn).

But Lloyds TSB did little to inspire investors as it traded 4p down at 523p after it said in a trading statement that it was on track to deliver a strong first-half performance.

Elsewhere, the UK’s largest wine warehouse Majestic Wine toasted a 4% rise in share price – up 10p to 296p – after reporting a 10% lift in pre-tax profits to £14.5 million for the year to March 27.

Majestic said UK consumer’s were showing greater discernment with fine wines sales boosted by 30%.