FTSE finished upwards
The FTSE 100 Index finished the week at its highest level for more than five years today as it followed in the wake of big stock market gains around the world.
The Footsie ended 36 points up at 6157.3 by the close – its highest level since February 2001 and above the 6137 it touched on April 21 before closing at 6132.
It took a lead from another record breaking performance on Wall Street last night where the Dow Jones Industrial Average closed at an all-time high.
The Dow was in retreat in early trading today, but the sentiment across world markets was generally positive with gains in both Hong Kong and Japan.
Lloyds TSB led the charge in London with a 4% rise of 22p to 581p after HSBC upgraded the stock. Rival Barclays fared less well, however, after HSBC downgraded its rating sending shares 1.5p lower to 723.5p.
Mining and oil stocks added weight to the market as the cost of metals and crude rose. Heavyweight blue chip player BP was amongst the top performers with gains of 11p to 592p, while BHP Billiton moved 27p higher to 998p and Vedanta Resources was up 19p to 1381p.
But the rising oil price spelt bad news for British Airways where higher fuel costs hurt profits. Shares in BA were down 3p to 446p, while budget carrier easyJet weakened half a penny to 504.25p.
Second-tier stock Carphone Warehouse was in the spotlight again as its rollercoaster week drew to a close. It impressed investors on Wednesday with the acquisition of the UK arm of AOL, which bolstered its broadband internet customer base to two million and sent its shares up 8%.
However, Vodafone announced yesterday it was dumping Carphone as a provider of its contract phones and there was further concern as Orange said it was also reviewing its retail options. The news sent shares tumbling 13% yesterday and they fell a further 3% in early trading.
Carphone received a vital shot in the arm at lunchtime from mobile phone giant T-Mobile, which said it was happy with its relationship with the chain. That offered a brief boost to the stock, but it still finished the day 6.5p lower at 303.5p.
Elsewhere, high street retailer WH Smith made progress after a 7% fall yesterday as investors were left unimpressed despite rising profits. The stock was back in favour today, however, as it lifted 3% or 11p to 360p.
Specialist engineering group Renishaw issues a warning that profits would take a knock if current exchange rates were sustained. But it didn’t seem to cause too much damage as shares gained 3.5p to 803p.
Meanwhile, the recovery of UK Coal was dealt a blow after it revealed it would make a loss in the current financial year because of production problems. The stock was down 6.5p at 214.5p.
The day’s biggest risers were Lloyds TSB up 22p at 581p, BHP Billiton up 27p at 998p, Rio Tinto up 72p at 2737p and Cairn Energy up 41p at 1876p.
The day’s biggest fallers were Amvescap down 20p at 617p, Centrica down 6p at 326.75p, Next down 33p at 1928p and Tate & Lyle down 10p at 757.5p.
