The stock market crept ahead today as traders fought to catch up with yesterday’s market rises in New York and Europe.
But they kept a weather eye on the pound following the weekend’s so-called fudge over the presidency of the European central bank.
After London currency traders came in to work on the bank holiday only to find little demand for sterling, trading in the pound was expected to start in earnest today as Britain’s big investors started the week.
The pound edged up gently against the Deutschmark as currency markets opened, but not enough to rattle share dealers yet.
The FTSE 100 index of leading shares gained 21 points in early trading to 6031.3, easing back from its early 54.3 points gain.
Relief that sterling’s gains were not higher was reflected in the improvement of shares in exporting manufacturers, although until Thursday’s Bank of England decision on interest rates, the City was not gambling too enthusiastically.
GKN gained 7p to £17.45, Smiths Industries edged up 4p to £13.71 and Siebe grew 13p to £13.80.
The financial sector had a mixed start, however, with former building societies like Halifax and Abbey National falling out of favour, down 5p to 795p and 23p to £10.92 respectively. HSBC joined them below decks, 56p down at £18.42.
But insurance stocks mostly continued their campaign ahead, with General Accident up 90p to £15.70, Legal & General up 11p to 755p and Norwich Union up 4p to 455p.
On a day of scant corporate news, Kingfisher edged up 3p to £10.65 after announcing a £250m deal giving it access to the German market.
Investors in leisure group Celebrated saw their shares leap 10% upwards with its penny gain to 11p after announcing its Starvin Marvins restaurants hit made a profit for the first time last year.
PA News 05/05/98
