Footsie up in early trading

The FTSE 100 Index continued its recent improvement after seeing world markets remain steady following North Korea’s claims to have held nuclear testing.

With the Nikkei and the Hang Seng both closing in positive territory, the Footsie stood 21.4 points higher at 6052.3 by mid-morning.

A gain of 2% for Vodafone lay behind London’s improvement, as sentiment continued to improve towards the market heavyweight, which cheered 2.75p to 128.75p.

Among other market-moving stocks, GlaxoSmithKline added 15p to 1469p and global banking giant HSBC lifted 13.5p to 1008p.

On the downside, steel giant Corus lost some of its strength following several days of speculation over the prospect of a bid from India’s Tata. Shares topped the Footsie fallers board with a drop of 22.5p to 471.5p, a fall of nearly 5%.

ITV was also under pressure, down 1.75p at 98.5p, as speculation grew about the broadcaster’s battle to find a replacement for chief executive Charles Allen.

Marks & Spencer edged lower after stockbroker Seymour Pierce introduced a hold rating because the recovering retailer’s share price was nearly at its target price of 664p. Shares fell 4.5p to 658p.

Richard Ratner, research analyst at Seymour Pierce, said: “We feel at current levels it is time to take a breather and pull our recommendation back.”

Outside the top flight, takeover talk caused shares in tour operator First Choice to rise by more than 6%, up 13p to 218.5p.

Biscuit maker Northern Foods led the list of second-tier fallers, as traders digested another lacklustre trading update from the company. The Leeds-based owner of Goodfella’s Pizzas and Fox’s Biscuits saw sales decline 1.1% in the six months to September 30. Shares fell 3.5p to 85.75p.

Cake maker Inter Link Foods also slipped – down 70p to 429p – after it said it was no longer in takeover talks with a private equity house.