The London market ended today firmly in the black after overcoming fresh concerns about interest rates.
The FTSE 100 Index finished the session 17.1 points up at 5058.9 despite higher-than-expected inflation figures that stoked fears of another hike in the cost of borrowing.
Figures showing inflation stayed at 1.6% in January left traders undecided about whether the Bank of England would hike rates by a further quarter point.
Analysts, some of whom had predicted a fall of 0.1 percentage points, said the data made a rate rise more likely.
However, investors appeared to shrug off the worries as the FTSE 100 Index hit its highest level in two-and-a-half years.
A fall in US retail sales to the lowest level in five months also failed to dent progress on Wall Street, where the Dow Jones Industrial Average rose 45 points after London’s close.
In London, BG advanced 7.25p to 395p after it announced a 36% improvement in underlying earnings for the final three months of last year.
As well as a strong performance in 2004, BG impressed investors by raising its previous projections for growth to the end of the decade and beyond.
Power giant National Grid Transco was another riser, up 10.5p to 544.25p, after broker CSFB raised its target price for the stock.
Among other blue-chip companies with results, cruise giant Carnival rose 13p to 3169p after lifting its revenues forecasts for this year, although it left guidance on earnings unchanged.
Drinks group Diageo continued its recent rally – up 8p to 751p – ahead of its half-year results on Thursday which are expected to show underlying revenues growth of 6% after stripping out the impact of currency swings.
But directories group Yell was off 2.25p at 467.5p despite the news that UK revenues had accelerated in its most recent quarter.
Outside the top flight, UK Coal continued to come under pressure after announcing it would not be able to fulfil a contract for power station Drax.
The mining group saw its share price fall 8% or 10.5p to 131.5p, as it blamed geological problems at its Kellingley colliery for the expected shortfall.
Catering equipment group Enodis saw its shares fall despite posting higher revenues and profits after benefiting from fast food chains extending their menus to include healthier food.
Shares weakened 4.25p to 111p after the results, which one analyst said were exactly as expected.
And book shop chain Ottakar’s was in the doldrums after unveiling a management reshuffle as it fought back against growing competition and slowing sales. Shares weakened 5%, or 14p to 281.5p.
Oil group Burren Energy pushed ahead 3.75p to 477p after announcing it had bought a stake in India’s sole publicly quoted oil and gas explorer.
The day’s biggest risers were Cable & Wireless, up 3.25p to 133.25p, Pearson lifting 15p to 658p, Scottish Power gaining 9.75p to 446.75p and BHP Billiton adding 14p to 693.5p.
Biggest fallers included Cairn Energy, down 21p to 1095p, Emap off 14.5p to 872.5p, AstraZeneca losing 30p to 2053p and Reuters shedding 5.25p to 407.75p.
References: EGi News 15/02/05
