FTSE edges upwards

Shares in iSoft rallied today as the company involved in a project to provide electronic NHS patient records secured the support of its banks.

The stock, which had been trading at 460p a year ago, rose by 13.5p to 56p - even though iSoft also unveiled net losses of £382 million and offered more details about the accounting problems of recent weeks.

Developments at the small-cap stock generated the most interest in a quiet session for heavyweight corporate news. As a result, the FTSE 100 Index stood near to its opening mark – up 9.5 points at 5878.6 by the close.

It was up 25 points at one point, but the market showed signs of nerves over the possibility of higher interest rates. Those fears were heightened by evidence of a consumer spending boom in the second quarter of the year.

Among the mining stocks on the way up, Kazakhmys benefited from a positive broker note from UBS as shares gained 17p to 1221p. Xstrata topped the risers board, up 65p to 2338p as analysts pointed to the benefits of its purchase of Falconbridge, a copper and nickel producer.

Steel giant Corus led the Footsie pack for much of the session following a rise of 6.25p to 403.5p, reflecting the anticipation of half-year results next week and the continuation of recent takeover speculation.

The banking sector was also on the front foot with Lloyds TSB up 3p at 526p, Barclays 5.5p stronger at 649.5p and HSBC 6.5p higher at 949p. Insurers moved in the opposite direction with Prudential down 3.5p at 576.5p.

Shares in mobile phone giant Vodafone were given a much-needed boost after the company raised £1.4 billion from the sale of its 25% stake in Proximus. The stock, which has under-performed the rest of the market in the last year, was up 1.5p at 112.25p.

Shares in can-maker Rexam lost some of their sparkle after a rise of 5% yesterday in the wake of positive half-year results. Investors took the opportunity to book profits, leaving the stock 11.25p lower at 538.25p.

Outside the top flight, services group Interserve extended recent losses after it said a review of its accounts following a mis-statement had been more complex than thought. It put back its results by a month, prompting shares to fall 13.75p to 260p, a drop of 5%.

Asset management group Henderson posted the strongest gain in the FTSE 250 Index after it said pre-tax profits rose 31% in the first half of the year to £46.2m (€66m), boosted by sales of high margin products. It also said it planned to return £200 (€290m) shareholders.

The biggest Footsie risers were Xstrata up 65p at 2338p, Standard Chartered ahead 22p at 1310p, Schroders up 14.5p at 868.5p and Corus ahead 6.25p at 403.5p.

The biggest fallers were Rexam down 11.25p at 538.25p, Wolseley off 11p at 1065p, ITV down 1p at 104.25p and Associated British Foods off 7.5p at 830.5p.