FTSE on the up after turbulent week

Nervous investors went in search of cheap-looking stocks today as the London market showed tentative signs of recovery following a turbulent week.

The FTSE 100 Index, which has fallen by around 7% since the Japanese earthquake last Friday, climbed 43 points to 5641.3 as traders awaited further updates on efforts to bring the Fukushima nuclear crisis under control.

IG Index trader Anthony Grech said: “The FTSE has taken the view that ’no news is good news’ and is piling on the points as investors hope for a rebound.”

The Nikkei, which fell heavily on Monday and Tuesday before a rebound yesterday, slipped 1.5% in Tokyo but the decline was not as bad as earlier in the session.

World markets nosedived yesterday when EU’s energy minister said Japan’s damaged nuclear plant was “out of control”, before it transpired the comments were made a day earlier and were not based on new or privileged information.

Investors have been swamped with unsettling news in recent days with unrest in Bahrain and disappointing US economic news adding to the Japanese worries.

In London, shares in Legal & General failed to benefit from the insurer’s announcement of a 24% rise in its full-year dividend. Analysts praised the results, which showed a 2% rise in group pre-tax profits, but shares were down 1.1p at 110p.

Other insurers fared better amid a better session for the wider market, with Prudential up 13.5p at 687p and Aviva 12.15p stronger at 433.4p. Other risers included Royal Dutch Shell, which rose 64.25p to 2114.25p.

Roofing and insulation specialist SIG rose 7%, or 8.6p to 129.6p, in the FTSE 250 Index after it posted a 3% improvement in underlying profits and said it planned to resume dividend payments later this year. It has been forced to downsize in recent years due to the construction downturn but expects trends in its key markets to stabilise in the year ahead.

In a strong session for stocks in the FTSE 250 Index, Heritage Oil jumped 7% or 20.9p to 310.6p after the Financial Times said the oil and gas explorer had received an informal takeover from a Middle Eastern company.

Heritage, which is focused on Africa, the Middle East and Russia, is understood to have rejected the offer worth 425p a share.

It was joined on the risers board by bakery chain Greggs, which enjoyed another strong session in the wake of its full-year results on Wednesday.

Greggs posted an 8% rise in profits and sounded hopeful about offsetting rising costs this year, prompting shares to rise another 25.6p to 491.9p.