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Leading shares posted their fifth consecutive day of gains in another thin trading session as City investors tackled a clutch of results from blue-chip companies.
They gave a lukewarm reception to third-quarter numbers from Barclays, despite a return to the dividend list, with the shares retreating 13½p to 329½p, making it one of the worst blue-chip performers.
HSBC enjoyed a better reception to its third-quarter numbers with the shares topping the leaderboard, up 29¾p at 721¾p, after Europe's biggest bank confirmed the worst of the global economic crisis was over.
Royal Bank of Scotland, which reported huge losses last week, lost an early lead to trade 0.5p off at 38.8p.
The FTSE 100 index, which raced back up above 5200 yesterday, is now making a move on the 5300 level with a rise of 8.35 at 5243.53. That takes its rise since the market's low point in March to almost 52%.
Turnover yesterday was reported to be among the lowest of the year and that was leaving aside the fact that the London Stock Exchange's computerised trading system blew a fuse late in the day. The glitch is said to have meant dealers were unable to complete crosses in at least a dozen blue-chip companies. Shares in the LSE drifted 4p to 913½p this afternoon.
The index was held back by a reversal of fortune for index heavyweight Vodafone, down 2.3p at 135.6p, following yesterday's rise. The mobile phone giant failed to impress with its 2.4% rise in first-half profits to £5.9 billion with the emphasis very much on doubling cost cuts to £2 billion.
Imperial Group posted a rise of 69p to 1896p after a strong performance which saw operating profits grow by 10% in the first half. Stockbroker Ambrian continues to rate Imps a buy and says the group will “return eventually to a 50% payout ratio as net debt declines”.
Bid target Cadbury shaded a further penny to 760½p following Kraft's decision to launch a formal bid yesterday without increasing the terms. City speculators are waiting to see if a counterbidder emerges, forcing Kraft to improve the terms. Online casino operator 888 Holdings lost 1¾p to 96¼p following third-quarter results. Collins Stewart has a hold rating on the shares and says growth prospects are already included in the current rating.
That might have prompted falls in the likes of Ladbroke, down 4¼p at 120¼p, and William Hill, 4¼p off at 174¾p, but whispers also doing the rounds claim both bookies are set to lose their places in the influential Morgan Stanley Capital Index.
UBS clearly was not impressed with last week's results from Rentokil Initial, 1¼p firmer at 106¾p, and its promise to return its City Link courier business to profit. It has removed the shares from its European Support Services most preferred list and instead has added rivals Mitie, 4½p lighter at 238½p, and Serco, down 1½p at 534p. Morgan Stanley has tweaked its target for Rentokil from 115p to 120p with an overweight rating.
Unicredit has raised its target for British Airways, 0.1p lighter at 199.3p, from 145p to 210p but continues to rate the shares a hold. This is in spite of BA reporting losses of almost £300 million last week and having seen its shares drop from a peak of 243p this year.
The Qatar sovereign wealth fund is to sell as many as 25 million of its preferred shares in Volkswagen, or about half its total stake in the German carmaker.
The fund says it still plans to increase its holding of Volkswagen's ordinary shares to 17%.
The move comes as Volkswagen attempts to sell up to 135 million non-voting preferred shares to help pay for a stake in rival Porsche Automobile.
Qatar caused a stir last month when it sold £1.3 billion worth of shares in Barclays, fuelling speculation that it would use the money to either increase its 26% stake in supermarket chain J Sainsbury, down 5p at 328¾p, or launch a full bid.
Centrica put on 3¼p at 246p after UBS added the shares to its key call list. UBS see scope to yield further growth through tighter capital management and cost-cutting following the acquisitions of Venture Production and a stake in British Energy. This will double the level of vertical integration at Centrica compared with two years ago.
In turn, this will also protect the business from strong movements in commodity prices, a must in the today's UK energy market. UBS has repeated its buy rating on the shares and 320p target.
