Tonight:
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Leading shares launched a fresh assault on the 4600 level again today, enabling stock-market investors to extend their current winning streak.
They were encouraged by a plethora of bumper profit numbers from blue-chip companies which indicated that UK PLC is still buzzing.
City folk thrive on good news these days, and they showed their appreciation by chasing the FTSE 100 higher. It rose 88.42 to 4635.95 — its highest level since 6 January. The squeeze among second liners drove up the FTSE 250 index by 156.10 to 7918.69. Wall Street also rebounded this afternoon helped by a clutch of second-quarter trading numbers from blue chips such as ExxonMobile. The Dow Jones surged 153.12 to 9223.84.
Back here, results from satellite broadcaster BSkyB, up 25½p at 545p, and BT Group, 13.5p higher at 126.2p, were way ahead of expectations.
There were also favourable numbers from British American Tobacco, 29p dearer at 1868p, Smith & Nephew, 7¼p stronger at 482¾p, miner Kazakhmys, 44½p up at 832p, and Royal Dutch Shell, 4p lighter at 1593p. Brokers said results from British Gas operator Centrica, 6p cheaper at 225p, just about passed muster.
BAE Systems, down 19¼p at 308¾p, raised profits but it's plagued by a growing pension deficit, and Reed Elsevier was left nursing a loss of 64½p at 416p. The group's results were also accompanied by a “cash box” placing to raise almost £700 million, which is likely to heavily dilute existing shareholders.
Cazenove and UBS worked on an accelerated bookbuilding exercise to arrange for a placing of 109 million shares in London and a further 63 million shares in Amsterdam with institutional investors at a price of 405p.
The miners have swung back into favour with the help of a revival in the price of copper on world markets. That lifted the likes of Rio Tinto, up 169p at 2465p, BHP Billiton, 80½p better at 1582½p, and Antofagasta 55½p at 764p. Randgold, which was sold off earlier this week on the back of disappointing production numbers, rallied 18p to 3650p.
Platinum producer Lonmin jumped 106p to 1362p. Citigroup has raised its rating from hold to buy with risk reduced from high to medium and says that the worst of the group's problems are over.
It also says the shares have been depressed by the weak car market, a strong South African rand and the uncertainty surrounding its Hossy and Saffy shafts. But the danger points have now been passed on all of those issues. The one remaining area of doubt is the future of Xstrata's near-25% stake.
The oil price also ticked better on world markets in the belief that the end of the recession will result in increased demand and drive the price of crude still higher. The price of Brent crude climbed $1.55 to $68.08 having suffered a sell-off yesterday following news of a big jump in oil inventories. There were gains for BP, 2.9p at 506.95p, and Cairn Energy, 20p at 2421p.
Ambrian Partners has begun coverage of Bowleven, up 7p at 76¾p, the oil explorer with interests in Cameroon and Gabon. It rates the shares a speculative buy with a 132p target. A year ago the shares were changing hands at more than 300p a share.
Luxury cruise line operator Carnival bounced back from opening falls which reflected disappointing results overnight in the US from its arch-rival Royal Caribbean. The shares rose 30p to 1720p, after touching 1649p.
Shares of Gulf Keystone Petroleum rose sharply yesterday in the wake of intense speculation that the company was in bid talks with the Indian Oil Corporation and Oil India joint venture.
It denies any suggestion it is in bid talks and, instead, confirms it is contemplating a placing of shares to raise additional funds. It wants the money for its Kurdistan development programmes.
Naturally enough, the shares reacted badly to the news, which blew off much of yesterday's froth leaving the price trading ¾p lower at 12p.
Drug companies were back in the spotlight. AstraZeneca jumped 42p to 2845p following its latest results.
Jefferies has also raised its target on another drugs company, Shire, from 700p to 770p, but has repeated its underperform rating. Morgan Stanley, on the other hand, has dropped its target from 1208p to 1172p, but remains overweight in the shares. The Shire share price responded with a rise of 2½p to 895½p.
