FTSE closes up 30.5 points

A resurgent Morrisons led the London market forward today after the supermarket chain impressed the City with its half-year results.

The figures from the Bradford-based group showed it turned first-half pre-tax losses of £82m (€122.28m) into profits of £134.2m (€200m) this year, as it overcame problems associated with the takeover of larger rival Safeway in 2004.

Morrisons shares jumped 8% – up 18p to a two-year high of 251.5p – while the rest of the market was also positive with the FTSE 100 Index closing 30.5 points to 5896.7.

Sainsbury’s joined Morrisons on the way up after TNS till-roll figures showed progress in its battle to overhaul the sector’s second-placed operator Asda. Sainsbury’s was up 9.25p at 387p.

Cruise ship firm Carnival was another strong gainer with a rise of almost 6% - or 129p to 2453p – after it reported an 8% hike in revenues following a strong season for its European and Alaskan cruises which helped offset higher fuel costs.

Other heavyweight risers included Vodafone, which rose 1.75p to 116.25p, and Prudential after a gain of 8.5p to 623p.

With oil prices at $61 a barrel, BP fell half a penny to 579p and BG Group dipped 6p to 639.5p.

Power providers were also impacted by a cooling in wholesale gas prices, with International Power down 8.75p at 305.75p and North Yorkshire-based Drax off 17p at 818p.

Engine giant Rolls-Royce was another faller, down 4p to 451.75p, after the owner of Airbus announced further delivery delays on the A380 superjumbo.

And electricity firm Scottish & Southern Energy dipped 5p to 1261p after it emerged it was lining up a New Year hike in energy bills after a pledge to leave prices on hold for the rest of 2006.

Traders were also watching Northern Rock after a 4% jump in its share price. The Newcastle-based group – often seen as a target for consolidation in the banking sector – was up 43p at 1213p.

Former top flight company Cable & Wireless was among the risers in the FTSE 250 Index. Shares in the telecoms company were up 1.75p to 131.5p, as it gave a presentation to investors offering guidance of better-than-expected margins growth at its international operation.

Nightclub operator Luminar also rose 1.5p to 574.5p, reflecting a return to positive sales growth at its dancing division. The company did not provide an update on the sale of its Chicago Rock Café division.

And Pizza Express owner Gondola Holdings added 1% after delivering full-year results broadly in line with expectations. With the company also in the takeover frame following an approach from Cinven, shares gained 5p to 405p.

The day’s biggest blue chip risers were Morrisons up 18p to 251.5p, Carnival up 129p to 2453p, ICAP up 20.75p to 523p and Reuters up 16p to 429.75p.

The day’s biggest blue chip fallers were International Power down 8.75p to 305.75p, Drax off 17p to 818p, British American Tobacco off 20p to 1490p and Lonmin down 33p to 2567p.