FTSE in positive territory

The London market remained in positive territory today as takeover rumours cheered trading.

Gains for miners buoyed the FTSE 100 Index after Friday’s strong session, when leading stocks gained more than 2%.

By mid-morning today, the Footsie edged 8.8 points higher at 6038, helped by rises in Asian markets after Chinese officials moved to reassure investors’ economic concerns.

In London, reports of a private equity approach for ITV led the broadcaster to near the top of the Footsie risers’ board. The stock was up 1.8p to 78.3p, or more than 2%, following weekend reports of a possible deal.

Miners were among the morning’s best performers after Anglo American announced a tie-up with the China Development Bank to develop natural resources in China and Africa.

This lifted its shares 87p higher to 2997p, with gains also seen for sector peers Vedanta Resources and Antofagasta, which rose 68p to 2028p and 12p to 712p respectively.

Banks were also in better shape amid the weak trading, with Royal Bank of Scotland up more than 5%, or 20.25p, to 409p, and Barclays up 6.75p to 478.75p.

In the second tier, news of a merger offer from Punch Taverns for rival Mitchells & Butlers saw the firms enjoy differing fortunes in the market today.

Shares in Punch were down 53.5p to 660p as analysts warned the stock would be diluted under the terms of the deal, while M&B stock was 18.75p better off, at 489p.

Among the fallers, it was a bad day for the airlines after Irish carrier Ryanair reported gloomy prospects for next year amid a “perfect storm” of higher fuel costs and a consumer squeeze. Shares were down 11%, or 0.41 euros (31p) to 3.21 (241p) euros, with rival budget carrier easyJet down almost 8%, or 54p, to 659.5p.

British Airways fell 4p to 314p, with the sector gloom spreading to cruise ship operator Carnival, which was off 20p at 2219p.