BA leads FTSE gains

Embattled airline British Airways led a fifth day of gains on the FTSE 100 Index today after announcing emergency funding plans.

The Footsie rose 38.4 points to 4400.2, with BA the leading riser after the under-pressure airline confirmed a £600 million fundraising.

London’s blue chip share index is on course for its best week since March, buoyed by a fresh rally for US and Asian stocks overnight thanks to better than expected earnings from technology firm IBM and JP Morgan Chase & Co.

BA shares rose 5%, or 6.8p to 138.9p, as chief executive Willie Walsh said the airline had put to bed any suggestions that British Airways is in any sort of risk.

The airline, which also said it expected to report operating losses of around £100 million for the quarter to June 30, will raise £300 million through a debt issue and release £330 million in banking facilities from its pension pot.

Telecoms group Cable & Wireless was another riser, up 2.4p at 132.7p, after it said it expected growth in underlying earnings to be around 30% in its worldwide business in the year to the end of March.

The group will also face shareholders today at its annual general meeting amid mounting anger of executive pay plans.

One of the biggest gains in the FTSE 250 Index came from Northern Foods as analysts continued to upgrade their forecasts in the wake of this week’s better than expected update from the Fox’s biscuits maker. Shares rose 4% or 4p to 64.5p.

Sentiment was also positive towards broadcaster ITV ahead of its half-year results in early August. ITV, which added 1.5p to 35.5p, received a boost earlier this week when broker UBS upgraded the stock to buy.

Elsewhere, Britain’s biggest nightclub operator Luminar saw shares soar 10% after the market was cheered by its plans to hike drinks prices back up.

The news overshadowed a 3.3% fall in like-for-like sales since February 27, helping shares add 11p to 121.25p.