The London market had a bright start to the week today, moving back above the 3900 level as heavyweight oil and telecom stocks pulled ahead.
Gains on Wall Street on Friday helped the mood, with both the Dow Jones Industrial Average and tech-dominated Nasdaq ending the session higher.
But Asian markets were weak and traders are expecting a subdued start to dealing in the US this afternoon.
Despite this, the FTSE 100 Index was up 52 points at 3912.1 after an hour trading and having a steadier session than Friday’s wild swings.
Oil stocks made good gains after the oil price opened higher. BP rose 19p at 456p while Shell was ahead 11p at 393.5p.
Telecoms groups on the up included Vodafone rising 1.5p at 90.5p, Cable &Wireless up 2.5p at 129.5p and mmO2 1p ahead at 42p.
Cruises group P&O Princess also steamed ahead, rising 22p at 463p.
The US Federal Trade Commission is imminently expected to rule whether P&O Princess’ merger with Royal Caribbean, or a takeover bid from America’s Carnival can go ahead on competition grounds.
Other risers included supermarket group Safeway, up 2.5p at 216.5p on renewed speculation it was being eyed up as a takeover bid. Weekend reports said ASDA and Sainsbury’s were considering bidding.
Outside the FTSE, British Airways marked its first day as a FTSE 250 stock with a 4.5p rise to 117.5p.
And struggling nuclear group British Energy surged 7.5p to 17p on expectations the government will extend the group’s £410m loan when it lapses this Friday.
EGi News 23/09/02
