Market report. Thursday close

By THIS IS MONEY
Updated:

 

Leading London shares shook off their recent worries about rising interest rates to pull sharply ahead, largely driven by gains among technology stocks.

The Bank of England's decision to raise interest rates by 0.25% to 5.5% had been widely expected in the City, but relief after the nervous build-up to the announcement helped boost the FTSE-100 Index.

The Footsie, which had been up by around 17 points before the announcement at midday, rose as much as 76 points during the afternoon session.

The blue chip index was up by a robust 50.5 points at 6331.3 at the close of trading.

Technology stocks led the gains, boosted by strong rises in the US Nasdaq market and the launch of the London Stock Exchange's own technology market, Techmark.

As well as keeping up their membership in the existing FTSE indices the tech stocks are also included in the new FTSE Techmark 100.

The new index reflected the stronger interest in tech shares showing a strong gain of more than 5% - up 120.76 points at 2421.13 at the close.

Among the FTSE-100 gainers also on the technology index were software group Sage which added 335p to £37.31, computer services group Sema put on 58 1/2p to 889 1/2p and financial services technology company Misys added 46p to 589p.

Second tier tech stocks in the FTSE-250 also pulled ahead. Chip designer ARM Holdings continued its upward drive gaining 123 1/2p to £21.03, Admiral up 92 1/2p to £11.45p and Computacenter up 59p to 750 1/2p.

Back in the FTSE-100, Boots made some strong gains after reporting a surge in sales and profits. But by the close of trade it slipped 1 1/2p to 630 1/2p.

British American Tobacco benefited from reports that the Florida Supreme Court was considering a request by tobacco firms to block a Miami court case against cigarette-makers. BAT puffed up 9 1/2p to 400p.

Railtrack slid 32p to £12.13 despite announcing half year profits up and running at £1.3 million a day.

The pharmaceuticals put in a mixed performance as US drugs groups Warner-Lambert and American Home Products announced a mega-merger.

SmithKline Beecham gained 16p to 814p and Glaxo Wellcome rose 36p to £18.26, but AstraZeneca fell 23p to £27.33.

And Tate & Lyle sweetened the market with improved profit figures despite a slip in sales. The sugars and starches group gained 27p to 427p.

Elsewhere, building materials group Tarmac made strong gains on news that it had resumed talks with Anglo American over a fresh potential 585p-a-share bid for the group.

Tarmac gained another 67p to 554p while South African group Anglo American, which moved its main share listing to London in May this year, slipped 35p to £33.30.

Knutsford the shell company bought into by Asda chairman Archie Norman and other entrepreneurs also continued its rocketing rise, gaining 90p to 240p - another 60% rise.

Trinity Mirror slipped 12p to 569p after confirming irregularities in the circulation figures given for three key regional titles.

The highest risers on the Footsie were Sage Group which added 335p to £37.31, Misys rose 46p to 589p, Sema Group jumped 58 1/2p to 889 1/2p and Reuters was up 39p 604 1/2p.

The biggest fallers were Telewest Communications which dived 13 1/2p to 276 1/2p, BSkyB fell 23 1/2p to 620p, Shell dropped 15 1/2p to 449p and Unilever shed 18p to 541p.

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