Market report: Friday close

By THIS IS MONEY
Updated:

 

STRONG domestic economic growth and a weaker pound enabled the FTSE 100 Index to make strong progress today.

Figures showing that UK unemployment had fallen to its lowest level since 1984 lifted the spirits of investors, with the Footsie closing the session 31.8 points higher at 4537.3.

Analysts said blue-chip firms would benefit from rising levels of consumption that are expected to follow a 5% rise in average salaries in the UK.

Pressures on exporters eased as well with the pound in retreat versus the US dollar, moving back towards the 1.8 mark.

A positive start to trading on Wall Street also helped as the Dow Jones Industrial Average advanced more than 30 points in early trading.

Some of the City's biggest corporate names helped to prop up the Footsie today with BAE Systems ahead 7.25p at 212p and BT Group 4p higher at 181.5p. Drinks groups did particularly well with Diageo top of the risers board, up 31p at 766.5p, and SABmiller rising 16p to 636p.

Investors in Vodafone were lifted by comments from Nokia that the mobile market would enjoy double-digit growth in 2004 - even though the Finnish group was struggling to hold on to its market share.

Shares in Vodafone rose 3 1/2p to 134 1/2p and rival telecoms stock mm02 also improved 1/4p at 100p.

Positive broker notes helped supermarket giant Tesco, which rose 1/4p to 251 3/4p, British Land - 4 1/2p stronger at 626 1/2p - and broadcaster ITV, which gained 4p to 130p.

Oil stocks enjoyed mixed fortunes with BP giving back some of its recent strength, losing 2p at 497p. But rival Shell rose 1 3/4p to 392 3/4p.

Housebuilders were the focus of investors outside the top flight after Countryside Properties warned first half results would be 'significantly' down on last year. It stressed full-year figures were still likely to show an improvement but the update was enough to send shares 14% or 37 1/2p lower at 226p.

The rest of the sector was spooked by the warning, with Westbury down 22p at 463p, Bellway off 21 1/2p at 785p and George Wimpey down 8p to 422p.

Elsewhere, steel group Corus was 1/2p higher at 41p after the group urged shareholders to resist attempts by Russian businessman Alisher Usmanov to gain representation on the company's board.

And outsourcing group MITIE cheered 3% or 3 3/4p to 119 3/4p after it told investors that its trading performance remained good, with growth in line with expectations.

The day's biggest risers were Diageo, up 31p to 766 1/2p, BAE Systems ahead 7 1/4p to 212p, Gallaher lifting 22p to 679 1/2p and ITV gaining 4p to 130p.

Biggest losers included Sage, down 3p to 173 3/4p, Abbey National off 7 1/4p at 439p, Wolseley losing 11p to 813p and BAA dropping 7p to 521 1/2p.

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