Life insurer Prudential’s shares surged 4% today after it announced plans to restructure its UK business with the loss of 2,100 jobs.
The group topped the leaders board on the FTSE 100 Index as investors welcomed the plans, which Prudential said would save £175m in annual costs by 2004.
Prudential’s jump, up 27p to 762p, reflected the mood on the FTSE as it surged forward by a healthy 48.9 points to 5,120.1 in early trading.
The market took its lead from strong gains on Wall Street overnight, where traders shrugged off grim figures on the US manufacturing sector.
Microsoft’s tentative agreement to settle its antitrust battle with the US government helped fuel a 188 point surge on the Dow Jones.
Media stocks were among the other big risers in London today with BSkyB rising 23p to 770p after unveiling increases in its first quarter operating profit.
The increases came despite a 6% fall in advertising revenue and a smaller than expected growth in subscriber numbers.
Others shares in the sector followed suit with advertising giant WPP up 23.5pto 647.5p, Reuters 20p higher at 691.5p and FT publisher Pearson up 21p at 843p.
Software group Sage was also up, gaining 8p to 218p as Bank of America began coverage of the stock with a market perform rating.
Analysts expected the FTSE to fall back slightly during the morning ahead of unemployment figures out in the US later today.
EGi News 02/11/01
