Market report. Monday close

By THIS IS MONEY
Updated:

 

A surge in overseas markets helped shares in London jump ahead.

The FTSE-100 Index closed up 141.3 points at 6322.1, close to high point during the day.

The gains followed a strong opening on Wall Street with the Dow Jones Industrial Average putting on triple digit gains during the afternoon, building on Friday's 137 point rise.

The climb in New York reflected confidence among traders that US interest rates would rise by no more than a quarter point when the Federal Reserve announces its decision tomorrow - a hike which had been more than factored into the market.

Tokyo and Hong Kong also powered ahead overnight, adding to the positive sentiment.

UK Gross domestic product figures came in as expected, making little impact on the equity markets.

London blue chips were once again heavily influenced by strength in the trinity of banks, pharmaceuticals and telecoms.

Banks caused much of the Footsie's rise with far East-linked HSBC up 32p to 797p, Schroders up 20p to £13.93 and Standard Chartered ahead 79p to 938p - all warmed by the Asian gains.

The rest of the banking sector was also ahead, with Woolwich up 9p to 345 1/4p, Bank of Scotland 47 1/2p ahead at 786 1/2p and Lloyds TSB 45p ahead at 899p.

Telecoms groups also posted earlier gains with Telewest putting on 3p to 254 3/4p, Energis rising 84p to £15.44 and Cable & Wireless Communications ahead 14p to 662p.

Glaxo Wellcome jumped after reports that its irritable bowel syndrome drug was soon to be put on US drug regulators' fast track programme. Glaxo jumped 50p to £16.83 on a strong session for pharmaceuticals stocks.

AstraZeneca, which won a key US ruling in its battle against the expiry of its Losec stomach ulcer drug, jumped 107p to £25.30. SmithKline Beecham gained 29 1/2p to 836 1/2p.

Insurance companies made steady gains as industry figures showed new life cover and savings business rising 18% in the second quarter of the year.

Prudential gained 31p to 925 1/2p, CGU put on 20 1/2p to 937 1/2p and Royal & Sun Alliance gained 20p to 519p.

Drinks group Allied Domecq gained 11 1/2p to 558p as shareholders waved through the sale of its pubs operations to Punch Taverns.

Racal jumped 7 1/2p to 387 1/2p on weekend reports that the company was mulling a break-up of the group, which could include a sale or flotation of its telecoms operation.

Burger King-to-Ford dealerships group Gowrings jumped 2p to 135 1/2p on a strong set of interim profits. The group also delivered an upbeat statement on the outlook for the rest of the year.

Johnson Matthey, the catalysts and chemicals company, announced it had settled a commercial dispute with General Motors that has been rumbling for six years. Shares gained 15 1/2p to 649 1/2p.

City rumours that Hilton Group, the leisure company which owns Ladbroke, would offer a Gibraltar-based betting service to the British public, pushed shares up 10p to 233 1/2p.

Exploration group Emerald Energy was a strong speculative gainer as rumours of a big Columbian oil find swirled around the Square Mile. The company jumped a penny to 4 3/4p in heavy trading - a 27% jump.

The biggest risers in the FTSE-100 were Standard Chartered up 79p to 938p, Bank of Scotland up 47 1/2p to 786 1/2p, Energis up 84p to £15.44 and United Utilities up 37p to 735 1/2p.

The main fallers were Compass Group down 9p to 615 1/2p, National Grid down 4 1/2p to 398 1/2p, AB Food down 2 1/4p to 416p and Smith Industries down 4 1/2p to 981 1/2p.

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