FTSE halts its recent slide

The FTSE 100 Index halted its recent slide today as investors clung to hopes that the market was over the worst of its dollar-led worries.

The Footsie came within 16 points of dipping below 6,000, but eventually steadied to reach mid-morning 1.6 points higher at 6051.7.

One of the biggest gains of the session came from ITV after the surprise appointment of the BBC’s Michael Grade as executive chairman.

The broadcaster’s shares topped the risers board for a while, before settling 1.75p higher at 114.25p, a gain of more than 1%. Analysts said the appointment gave ITV much-needed stability, although it may also make the company less vulnerable to a takeover deal.

The other focus of a busy session was on the energy sector after Scottish Power backed a takeover approach worth £11.6 billion from Spain’s Iberdrola.

That was lower than the £12 billion expected, and with Iberdrola shares also part of the deal, Scottish Power investors were left cold by the announcement. Shares fell initially and were later unchanged at 746p, well below the 777p offered today.

Scottish & Southern Energy shared the disappointment, falling 19p to 1465p.

Insurer Old Mutual was the heaviest faller of the session, down 6.75p to 169.5p as investors reacted with disappointment to third quarter figures.

Among other movers, Yellow Pages firm Yell rose almost 2% after Goldman Sachs upgraded the stock to buy from neutral and said market concern over the integration of recent acquisitions appeared overdone. Shares were up 10p to 567p.

Outside the top flight, EMI shares jumped 7% after a report in the Financial Times said the music group had begun talking to private equity groups about a possible takeover. Shares were up 17.75p to 280p, as EMI returned to the takeover spotlight, just four months after failing to merge with Warner Music.