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Shares were being squeezed yet higher today with the 5200 support now clearly in sight for stock market bulls, despite the closure of several markets, including Tokyo and Wall Street, this afternoon.
Investors remain positive ahead of the third-quarter reporting season in the US which this week will see a number of big banks reporting, including JP Morgan and Bank of America.
The FTSE 100 Index rose 21.76 to 5183.63.
The shenanigans in the ITV boardroom continue with Sir Crispin Davis and Michael Bishop both ruling out taking over from Michael Grade. John Creswell plans to leave but will stand in as chief executive until a new one can be found.
Despite this backdrop, Goldman Sachs has raised its rating on the shares from neutral to buy, presumably because it believes the business will now be taken over. BSkyB continues to hold almost 19% of the shares having been paid 130p a share and in spite of being told by the regulator to drop its holding below 7%. ITV rose 1.7p to 48.1p as speculative buying increased.
Wolfson Microelectronics held steady at 125p in the wake of last week's profits warning. The shares have now drifted off from a year's high of 152p since last month, Citigroup has decided to raise its target from 115p to 135p and suggests that the worst of the sell-off may be over.
Oriel Securities says it has begun taking profits among the oil services sector after a strong run. It has a sell rating on Hunting, unmoved on 541p, and a reduce on Petrofac, steady on 996½p. Oriel also takes the view that Tullow Oil, up 13p at 1222p, is starting to look a bit expensive. The price has come up from 1115p level since the start of the month, supported by rumours of ExxonMobil's expansion in Ghana. Exxon is said to be interested in buying Kosmos Energy's stake in the giant Jubilee oil field in Ghana, which is also one-third owned by Tullow. There is also talk that state-run Ghana National petroleum is also looking to buy Kosmos' stake.
There wasn't much evidence of fireworks in Asian markets today, with Tokyo closed for Japan's Health and Sports Day national holiday. Wall Street will be closed today as American investors celebrate Columbus Day.
So Hong Kong made much of the running today although the Hang Seng index was down 199.4 points at 21,300.04. Sinolink Worldwide rallied 11.8% after the property developer said it planned to raise HK$525 million (£42 million) in a share placing to Asia Pacific Promotion to boost its working capital.
Asia Coal jumped almost 10% to 39 HK cents after the coal producer agreed to acquire mines from Wonder Champion Investment as it cashes in on surging demand for coal.
Seoul shares turned lower, weighed down by losses in refining issues on growing earnings concerns but firm gains in Hyundai Heavy and Hyundai Engineering lent markets support.
Analysts said caution prevailed ahead of key US data and domestic and US earnings, and following the market's winning streak late last week. “Shares are likely to be volatile for some time as investors increasingly want to confirm with their own eyes whether economic data and results are in line with earlier hyped-up expectations,” said Hong Soon-pyo at Daishin Securities.
The Korea Composite Stock Price index was down 0.6% at 1636.41 points, in line with its 14-day moving average of around 1640.
Shares in SK Energy tumbled 8.3% amid growing worries the country's largest crude refiner may be set to post weaker than expected third quarter earnings. GS Holdings, the holding firm of GS Caltex, South Korea's second biggest crude refiner, lost 3.2%. Hyundai Heavy Industries gained 1.1% after news the world's biggest shipbuilder was the likely winner of $1 billion (£631 million) gas plant deal from Australia's Gorgon liquefied natural gas project.
