Insurance giant CGNU buoyed the London market today after its full-year sales figures came in at the higher end of expectations.
The world’s seventh largest insurance company saw its shares gain more than 5% – up 44p at 880p – as it also provided a lift to other financial stocks.
As a result, the FTSE 100 Index shook off its early malaise to move ahead by 58 points and reach its high point for the session of 5,196.5 at lunchtime.
Others benefiting from CGNU’s strong results included Lloyds TSB up 18.5p at 743p and HBOS up 14.5p at 822.5p.
Insurers such as Prudential – 7.5p stronger at 796p – and Royal & Sun Alliance – up 10p at 371p – also brightened following CGNU’s update.
The group, which was created by the merger of CGU and Norwich Union, said pension and life sales lifted 12% to £2.5bn.
Trading was also aided by expectations of the Dow Jones Industrial Average opening higher when Wall Street reopens this afternoon following yesterday’s closure for Martin Luther King Day.
Heavyweight oil and pharmaceutical stocks were making gains, with oil giant Shell up 4.5p at 456.5p and BP ahead 7.5p at 521p.
Among the pharmaceutical stocks, GlaxoSmithKline was up 38p at £17.46, AstraZeneca ahead 42p at £31.78 and Shire Pharmaceuticals up 11p at 886p.
Tech and telecom shares were also edging higher after a difficult session yesterday.
Vodafone, which announced its global customer base had passed the 100m mark, rose 2p to 165p while mmO2 rose a penny to 86p and former parent company BT Group picked up 4p at 241.5p.
Tech shares looking brighter included chip designer ARM Holdings, up 11.5p at 314p and computer services firm Logica 5p at 580p.
Much will now depend on developments in the US later today as a number of tech and telecom firms are due to issue earnings updates.
However, among the fallers was takeover target P&O Princess, off 3.5p at 394p.
The group yesterday rebuffed a second advance from US predator Carnival in favour of its planned tie-up with Royal Caribbean.
However, Carnival hit back today by saying it planned to appeal directly to shareholders in a bid to get its 500p per share offer approved.
And Kent-based leisure firm Clubhaus slumped 33%, off 3.5p at 7.5p. The group today warned there could be no guarantee that talks to restructure its debt would result in a successful outcome.
Other fallers included upmarket furnishings and fabrics group Colefax after it reported a 32% dive in pre-tax profits for the first half of its financial year and warned that prospects remained bleak.
Shares lost nearly 14% – off 10.5p to 65p.
EGi News 22/01/02
