London close: Tate leads resurgent Footsie
Gains on Wall Street, strong miners, better results from Tate & Lyle and help from index big gun Vodafone put big losses at BAA in the shade, with London's leading index surging higher.
Sugar and sweeteners maker Tate & Lyle topped the blue chip risers after reporting a better than expected underlying profit before tax, amortisation and exceptional items of £295m. It views future trading with confidence.
Miners were back in favour as metal prices managed gains, taking the likes of Kazakhmys, Rio Tinto and Anglo American higher.
Confirmation that Vodafone has completed the $4.55bn purchase of mobile phone firm Telsim had the mobile colossus in the blue. A SocGen 'buy' note also helped.
Tobacco stocks were better following a positive note on the sector from UBS, with the Swiss broker lifting Gallaher to 'neutral' from 'reduce', while Imperial Tobacco is up to 'buy' from 'neutral' on valuation grounds.
Supermarket group Wm Morrison said chairman Ken Morrison will retire from his post by January 2008 and said it will make an announcement about a new chief executive in two to three weeks. It also cheered news that like-for-like sales in the 16 weeks to 21 May increased 6%.
On a more negative note, airport operator BAA lost altitude as investors digested news that the Office of Fair Trading is considering looking into the market structure of the UK airport industry.
The move from the UK's competition watchdog makes the chances of an increase in Spanish construction group Ferrovial's 810p per share offer for the British group unlikely, said dealers.
Cable & Wireless also lagged behind after its full year underlying profits came in lower than expected as conditions in the highly competitive domestic market continue.
It was bad news for cruises group Carnival, which ran aground after Deutsche Bank cut estimates and chopped its target price cut to 3,480p from 4,300p.
Meanwhile, Barclays said it performed strongly in the first quarter and expects full year income, impairment and expenses to be 'significantly' ahead of expectations. The group said high levels of activity with its customers and clients enabled it to deliver excellent profit growth.
Daily Mail & General Trust reported a 7% rise in adjusted profits for the half year, in line with expectations, but warned there is little sign of an advertising recovery in regional newspaper titles.
Interim profits are up at Mitchells & Butlers, with the pub group also toasting a healthy rise in recent like for like sales and encouraging signs of stabilisation in consumer confidence in its markets.
London Stock Exchange reported full year operating profit before exceptional items up 42% to £120.1m alongside news of a "very good" start to the current financial year.
The shares fell back though as the group failed to comment on any takeover news, while there was also talk of a possible investigation by the London Investment Banking Association into Nasdaq's 25.1% interest in the LSE.
Telecoms equipment firm Telent, formerly Marconi, rallied strongly though on news it has agreed in principle on the terms of a possible £346m recommended cash acquisition from Fortress Investment Group worth 529.5p per share.
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Engineering group Invensys saw operating profit rise 11% as it announced a new rights issue to raise £341m.
Medical innovations firm BTG surged ahead today after it reported a full year pre-tax profit thanks to growing recurring revenues and reduced costs.
Drinks group Britvic took a pasting after it warned that earnings for the full year modestly will be lower than market expectations, prompting Deutsche Bank to cut its view to 'hold' from 'buy' with the target price now 200p from 245p.
FTSE 100 - Risers
Tate & Lyle (TATE) 564.00p +5.62%
Kazakhmys (KAZ) 1,076.00p +5.44%
BG Group (BG.) 699.50p +4.87%
Corus Group (CS.) 373.00p +4.26%
Man Group (EMG) 2,285.00p +4.10%
FTSE 100 - Fallers
BAA (BAA) 787.50p -5.58%
Cable and Wireless (CW.) 97.50p -2.50%
SABMiller (SAB) 984.00p -1.50%
DSG International (DSGI) 196.50p -0.51%
Carnival Corporation (CCL) 2,191.00p -0.23%
