Market report: Friday close

By JAMES MCLEAN
Updated:

 

Concern that the market's two biggest miners, Rio Tinto and Anglo American, would slug it out for control of Australian target North proved unfounded today when Anglo retreated from the fray, sending shares in both firms bounding back from early losses. Anglo added 75p to 3236p and Rio rose 17p to 1055p.

Rio's increased £1.35bn cash bid, worth A$4.75 per share, has won over North's board and proved too rich for Anglo. Its spending spree may not be over as it also intends to run an eye over De Beers' £200m bid for Australian miner Ashton, Rio's long-standing partner in Australia's Argyle diamond mine.

Elsewhere the market was bouncing back from yesterday's five-week lows after a weaker than expected US jobs data helped the market extend an earlier 50-point gain to send the FTSE 100 index up 75.8 points to 6392.9. The index closed up 46.4 at 6363.5.

The data, which showed the US economy shed 108,000 jobs in July, countering Wall Street forecasts of a 70,000 gain and easing interest rate concerns, also helped cement an amazing overnight recovery for the Nasdaq. The Dow was down slightly.

Against a background of deepening losses for big-cap oil shares, slow going in the German telecoms auction and a European telecoms rally helped heavyweight Vodafone maintain the market's positive mood as it jumped 14 1/2p to 285 1/2p. BP slipped 11p to 597p and Shell shed 6p to 549p.

An array of London tech stocks were the star performers, helping the techMARK 100 add 69.29 points to 3502.13.

Bookham Technology led the Footsie charge, adding 339p to 3969p, closely followed by chip maker ARM Holdings, which gained 39p to 670p.

Troubled Thus recovered 6p to 130p, but was off earlier highs. City bookmaker Financial Spreads is talking about a take-out price for Thus of only 85p. Telewest was slowly crawling out of its doghouse after it issued a miserable set of numbers and said it was being hit by supply shortages earlier in the week. Its shares added 4 1/4p to 160p, but its set-top boxes supplier Pace Microtechnology dipped 3p to 802p. Some other outof-favour techs were also wilting, with Photo-Me dipping another 15p to 97 1/2p and Carphone Warehouse off 3 1/2p to 174p.

An expected second-quarter profits fall for foods and consumer giant Unilever was offset by enthusiasm about its plans for a management shake-up and divisional reorganisation. Relief that joint chairman Niall FitzGerald predicted earnings at the top end of forecasts also helped the shares add 5p to 431p.

Barclays, down 3p to 1553p, was recovering slightly after Thursday's losses, as financials moved higher from a mixed start after uncertainty about Government competition measures partly cleared.

Another upbeat assessment of prospects from Teather & Greenwood chairman Jeremy Delmar-Morgan saw the broker's shares rally 67 1/2p to 800p. AIM debutant Potential Finance was sparky, rising 45p from the offer price to 165p. Country Gardens slipped 6 1/2p to 273 1/2p after it ended talks with Wyevale, unmoved at 467 1/2p.

Trevor Webster's report on Thursday's trading

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techMARK, updated every 15 minutes

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