London close: Footsie sails higher
London's top stocks continued higher through the afternoon as Wall Street got off to a bright start, with Carnival closing strongly, overshadowing weakness among some of the oil and mining majors.
The cruise operator hit its best since mid May as the stock is seen offering value as it trades well off January's high, while fewer hurricanes this year are also attracting buyers.
The miners also narrowed earlier losses as traders bet that commodity prices would stabilise on the back of tension in the Middle East after news of an attack on the US embassy in Damascus.
Vedanta Resources and Anglo American pushed into positive territory, though Kazakhmys, Rio Tinto and Lonmin remained in the red.
Power station owner Drax reported a pre-tax profit of £317m for the six months to June and also announced a special dividend of 80p per share alongside its ordinary interim dividend payment of 4p per share.
British Energy and International Power also stepped back in sympathy.
The worst performer was terrestrial broadcaster ITV as the shares slipped on the back of a negative note from Investec that saw EPS forecasts reduced by 4% and 5% for this year and next.
Inter dealer broker ICAP was on the up after Citigroup started coverage with a "buy" note and a 585p price target, arguing that the shares offer 28% potential upside.
Credit Suisse repeated its "outperform" advice on business software group Sage, slapping a 285p price target on the shares arguing that the group still offers good value.
Anglo-Dutch steel manufacturer Corus gained as traders speculated on the possibility of a bid in the future. UBS said Corus can still offer value through restructuring but also looks attractive as a target or merger partner.
Oil prices down around 50 cents at $65.10 a barrel dragged on the sector with BG and Royal Dutch Shell the weakest.
Meanwhile, software firm Misys fell as it said it is still in discussions with prospective suitors though it is yet to receive any firm proposals.
Elsewhere the Office for National Statistics revealed UK inflation is running way above target and expectations at 2.5% in August. Economists noted the figures make another rate hike this year more likely.
Nationwide has moved to consolidate its position in the UK mortgage and personal savings market with a merger with rival building society Portman to create a mutually-owned society with assets of more than £150bn.
House builder Redrow's profits fell to £120.5m from £139m reflecting a softer housing market. The forward sales position is ahead of the historic norm with significant forward sales for its Debut product, it said.
Confectionery retailer Thorntons served up lower full year profits and announced chief executive Peter Burdon is to resign, but the shares climbed as the group said it remained confident going forward.
Aerospace group Cobham reported a 12% rise in underlying earnings per share to 4.97p for the six months to June. Basic earnings doubled after the disposal of four non-core businesses.
Engineering outfit Charter posted a strong set of results for the first half. It reported a 55% increase in pre-tax profit to £68.9m for the six months to June from £44.4m a year ago, on revenues up 26% to £624.7m against £495.9m last time.
Keyhole surgery equipment specialist Gyrus revealed interim earnings at the top end of forecasts and is optimistic about the full year.
High street clothing chain French Connection reported a half year loss but added the second half had started well.
Nikki Beckett, chief executive and founder of retail software group NSB, will step down when a successor is identified and appointed. The decision is by mutual agreement and is part of the board's management succession planning.
Celtic Resources is the company considering making an offer for Eureka Mining, Eureka said in a statement.
FTSE 100 - Risers
Old Mutual (OML) 166.00p +3.91%
Carnival Corporation (CCL) 2,433.00p +3.62%
BAE Systems (BA.) 385.50p +3.35%
Centrica (CNA) 319.75p +2.81%
Legal & General (LGEN) 135.50p +2.65%
Vodafone (VOD) 117.50p +2.40%
Standard Chartered (STAN) 1,338.00p +2.29%
Corus Group (CS.) 375.75p +2.24%
Schroders Nv (SDRC) 880.50p +2.21%
Yell Group (YELL) 583.00p +2.19%
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FTSE 100 - Fallers
ITV (ITV) 98.75p -2.23%
Drax (DRX) 856.00p -2.00%
International Power (IPR) 303.00p -1.78%
Xstrata (XTA) 2,248.00p -1.27%
British Energy Group (BGY) 641.00p -1.16%
Lonmin (LMI) 2,647.00p -1.08%
BG Group (BG.) 653.00p -0.99%
Kazakhmys (KAZ) 1,215.00p -0.90%
Cadbury Schweppes (CBRY) 555.00p -0.54%
Royal Dutch Shell 'A' (RDSA) 1,762.00p -0.45%
FTSE 250 - Risers
Charter (CHTR) 781.50p +8.39%
Redrow (RDW) 570.00p +7.55%
Morgan Crucible (MGCR) 297.00p +6.83%
Ashtead Group (AHT) 137.75p +5.56%
CSR (CSR) 1,171.00p +4.55%
Premier Oil (PMO) 1,029.00p +4.52%
Wolfson Microelectronics (WLF) 491.00p +4.25%
Dana Petroleum (DNX) 1,154.50p +4.06%
Wincanton (WIN) 310.00p +3.85%
Shanks (SKS) 187.25p +3.74%
FTSE 250 - Fallers
Misys (MSY) 231.25p -7.78%
GCAP Media (GCAP) 186.75p -3.61%
Gyrus Group (GYG) 358.00p -3.24%
Woolworths Group (WLW) 34.00p -2.16%
Debenhams (DEB) 185.25p -2.11%
Hikma Pharmaceuticals (HIK) 365.25p -2.08%
Halma (HLMA) 185.50p -1.98%
MFI Furniture Group (MFI) 85.50p -1.72%
Forth Ports (FPT) 1,748.00p -1.47%
Provident Financial (PFG) 622.50p -1.43%
