Footsie still going strong

The London market maintained its strong run today as investors continued to draw encouragement from recent earnings updates in the US.

The FTSE 100 Index followed its 2% improvement in the previous session with a gain of 17.3 points to 5851.2 today.

It was boosted by mining stocks on the back of robust copper prices, while investors also looked to developments at the top of two of London’s leading companies – Vodafone and BP.

Paul Webb, trader at CMC Markets, said: “The Footsie seems to be plotting a course for 6000 once again.”

The big news of the day involved Vodafone and BP with both chief executives in the spotlight. Lord Browne confirmed he will stand down from head of BP at the end of 2008, while Vodafone boss Arun Sarin faced a battle to convince shareholders of his merits at the mobile giant’s annual meeting today.

BP shares – off 3.5p at 630p – were subdued by a mixed response to half-year results and the news that Lord Browne will leave after more than a decade at the helm.

Vodafone shares meanwhile were up half a penny to 115.75p as investors continued to warm to yesterday’s first quarter trading update, although it emerged late on that almost 10% of shareholders voted against Mr Sarin’s re-election as chief executive.

A number of the major moves in the top flight today involved mining stocks, with Xstrata up 67p to 2024p, Rio Tinto 50p higher at 2725p and Antofagasta up 6.25p to 397p.

Shire Pharmaceuticals was also in good shape after the US Food and Drug Administration backed its treatment for Hunter syndrome, a rare genetic disorder. Shares jumped 3%, or 24.5p, to 852.5p.

British Airways gained 11.25p to 384.25p following a positive note from Morgan Stanley.

Merger pair Boots and Alliance UniChem were also doing well as investors took positions ahead of the tie-up, which is due to be completed by next week. Boots was up 16p at 766p, while Alliance lifted 21p to 1018p.

Banking stocks were under pressure ahead of the sector’s half-year reporting season, which kicks off with Northern Rock on Wednesday. Barclays fell 3.5p to 610p, while Alliance & Leicester dipped 8p to 1025p and Northern fell a penny to 1046.5p.

Outside the top flight, gaming group 888 Holdings fell 6% – or 9.5p to 148.5p - after a 23% hike in second quarter revenues fell short of market expectations. It also reported a drop in the number of active members.

Kitchen equipment group Enodis was up 2p at 217p after it opened up its books to a potential bidder from the US.

The biggest blue chip risers were Corus up 14p to 419.75p, Xstrata up 67p to 2024p, British Airways 11.25p higher at 384.25p and Shire up 24.5p to 852.5p.

The heaviest fallers were Smith & Nephew down 9p to 420p, Kelda Group off 13p to 847.5p, Cadbury Schweppes 7.5p lower to 515p and Associated British Foods down 12p to 848p.