Gains by financial stocks boosted the London market today as traders shrugged off negative momentum from across the Atlantic.
Better-than-expected UK employment figures also helped lift the FTSE 100 Index 5.4 points higher to 4728.2.
Official data released today showed another fall in unemployment and a drop in people claiming Job Seekers’ Allowance. The number of men and women in work has now reached a new record.
However, the Dow Jones Industrial Average prevented the Footsie holding on to the more significant gains seen earlier in the session. The index stood 20 points lower by the end of the day in London.
In London, HBOS was at the top of the Footsie risers, up 3% or 23.5p to 829.5p after Goldman Sachs raised its target price and Lehman Brothers said it preferred the stock to Lloyds TSB.
However, that failed to deter investors in Lloyds, which also saw its stock pick up 3% or 12p to 455.75p, making it the second-highest climber.
Alliance & Leicester was slightly higher – advancing 15p to 893p – as it forecast annual profits in line with expectations but said it was braced for slower growth in its core markets.
Vodafone was also among the risers as it recovered from yesterday’s losses, prompted by a report that its US ally Verizon was considering an offer for a key rival. Its shares rose 2.25p to 141.75p.
Confectionery group Cadbury Schweppes rose slightly – up 1.25p to 465.25p – as it stuck by its financial goals despite a likely fall in profits at its European drinks business.
In contrast, B&Q owner Kingfisher was the third heaviest blue-chip faller after reporting a slowdown in sales growth as trading conditions toughened over the autumn period. Shares fell 5.5p to 300.5p.
Outside the top flight, troubled holiday group MyTravel rose 9% – up 0.45p to 5.6p – as it said an upturn in its business in Europe and North America had helped it move into the black.
China maker Royal Doulton rose 15% – up 1.5p to 11.62p – after Waterford Wedgwood announced the terms of an agreed £39.9m takeover.
Housebuilder Wilson Bowden was up 13p to 1063p after forecasting full-year results in line with expectations despite the slowdown in the housing market continuing in the second half.
Motor dealer Reg Vardy was also in the black, up 8p to 478p, as it said the car buying market worsened in 2004, but insisted that its prospects remained good.
However, shares in holiday park operator Center Parcs slumped 11% or 9.5p to 78p after it warned that higher energy bills would hit results in its next financial year.
The highest climbers in the Footsie today were HBOS, up 23.5p to 829.5p, Lloyds TSB climbed 12p to 455.75p, Hanson was up 10.5p to 425p and Gallaher rose16p to 762p.
The heaviest fallers were Smith & Nephew, down 24p to 528.5p, Antofagasta fell 24p to 1064p, Kingfisher was down 5.5p to 300.5p and Pearson fell 11p to 606p.
References: EGi News 15/12/04
