FTSE makes gains

London’s blue-chips made tentative gains today after last week’s credit fears sent shockwaves through world markets.

The FTSE 100 Index was helped as a better performance in Asian markets overnight offset a late fall of more than 200 points from the Dow Jones Industrial Average on Friday night.

By mid-morning, London’s benchmark index was 10.3 points higher at 6224.8, helped by takeover activity and strong results from UK heavyweights.

Dulux paint maker ICI led the Footsie risers board with a gain of more than 7% after the company said it had rejected a new approach from Dutch rival Akzo Nobel worth £7.8 billion.

Despite the snub, ICI’s shares bubbled 43.5p higher to 620.5p, after it said it remained in discussions with Akzo and investors bet on the Dutch firm coming back with a higher offer.

Heavily-weighted HSBC also helped the Footsie move forward after the banking giant posted forecast-beating interim profits of almost £7 billion, despite an increase in its bad debt charges.

HSBC, the first of the “big five” banks to report this week, rose more than 3%, or 27.5p to 908p, on the back of the update.

Rival Barclays, meanwhile, slipped back 6.5p to 675.5p after the board of its takeover target ABN Amro refused to recommend its latest offer.

The Footsie’s leading faller was drinks and confectionery firm Cadbury Schweppes, which fell nearly 4%, or 22.5p, to 581p today. Analysts expect the firm’s sales to have been knocked by the weaker US dollar in interims this week, while the company has also postponed the sale of its US drinks business due to the current weakness in credit markets.

In the second tier, insurer Beazley made firm strides after beating forecasts with profits of £60.2 million. The shares leapt more than 6%, or 9.75p, to 159.75p after brokers at Numis Securities upgraded the stock.