London close: Housebuilders front Footsie surge
London doubled its already impressive lead during the afternoon session as investors piled into housebuilders on the chance UK interest rates may fall tomorrow, while Wall Street also rallied hard.
A weaker than expected survey on the UK services sector increased calls for a rate cut as Bank of England policymakers prepare to announce their decision Thursday.
The Chartered Institute of Purchasing and Supply's monthly purchasing managers index fell to 51.9 in November, the worst level since May 2003, from 53.1 the month before.
Meanwhile, UK house prices dropped for the third month in a row in November, according to the Halifax Wednesday, raising the prospect of a cut in borrowing costs from 5.75%.
Housebuilders Taylor Wimpey, Persimmon and Barratt Developments all made solid progress, with real estate giants Land Securities, British Land and Liberty International also in demand.
Retailers also perked up on rate cut hopes, with DSG International, Next, Kingfisher and Marks & Spencer all racking up above average gains.
United Utilities gushed higher as JP Morgan kept its 'overweight' rating and upped its price target to 850p from 820p after the electricity distribution unit sold for more than expected.
Miners Anglo American and Vedanta were better on stronger metal prices, while Rio Tinto was up on reports that China's largest steelmaker has publicly raised the possibility of launching a counter-bid to BHP Billiton. Meanwhile, Xstrata is buying Aussie coal miner Resource Pacific.
Crude prices near $89 a barrel also gave oil plays a boost, with BP, Royal Dutch Shell and BG well ahead.
Northern Rock was worst of the bunch again on more reports that the government is setting up plans to take troubled mortgage lender back under full state control.
Severn Trent also trickled lower after HSBC downgraded shares in the water utility to 'underweight' from 'neutral', with present uncertainty raising concerns.
Spread better IG Index says trading through the second quarter has been very strong, benefiting from high levels of market volatility and new customer signings. Revenue will beat top-end market expectations at around £85m for the six-months to end-November, an increase of approximately 53%. Current trading remains strong and IG is confident of prospects for the full year.
Media group Chrysalis is in early stage talks with "select parties" regarding a possible offer for the firm, it said today, adding that the £96.5m return of cash to shareholders will complete later this month.
Menswear retailer Moss Bros's full-year profits are likely to miss current market expectations. The last seven weeks had seen lower levels of footfall and sales and in the 18 weeks of the second half like-for-like sales were down 1.5%, it said.
Computer games retail Game Group shot forward after the Competition Commission conditionally agreed to allow its acquisition of rival Gamestation.
Bus and train group Stagecoach posted a 9% rise in underlying interim profits, adding it is confident over prospects for the rest of the year. Profit before tax and exceptional items rose to £84.6m in the six months to 31 October compared with £77.4m a year earlier.
Menswear retailer Moss Bros has warned profits this year will miss market forecasts after a sharp downturn in sales in the past seven weeks. "
Better margins and surging sales helped interim profits soar at online fashion retailer ASOS while current sales running at more than double this time last year. Profits in the half year jumped from £300,000 to £2.4m at the firm, which bases its lines of models worn by celebrities.
Spacelabs Healthcare's share price is moon-bound after its parent company declared its intention to buy up the 11% of the shares it does not currently own at 100p per share.
Franchise operations provider MyHome is friendless following the resignation of its finance director.
FTSE 100 - Risers
Taylor Wimpey (TW.) 203.25p +8.40%
DSG International (DSGI) 115.50p +6.06%
Royal Bank of Scotland Group (RBS) 465.75p +6.03%
Barratt Developments (BDEV) 467.75p +6.01%
Vedanta Resources (VED) 2,344.00p +5.40%
BHP Billiton (BLT) 1,647.00p +5.37%
Anglo American (AAL) 3,273.00p +4.97%
Liberty International (LII) 1,143.00p +4.86%
Persimmon (PSN) 796.00p +4.81%
Home Retail Group (HOME) 363.50p +4.76%
FTSE 100 - Fallers
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Northern Rock (NRK) 100.00p -2.91%
Yell Group (YELL) 391.25p -2.19%
Mitchells & Butlers (MAB) 507.00p -2.12%
Tesco (TSCO) 480.00p -0.88%
Carphone Warehouse Group (CPW) 356.00p -0.35%
Tate & Lyle (TATE) 440.75p -0.17%
Associated British Foods (ABF) 874.00p -0.06%
Severn Trent (SVT) 1,537.00p 0.00%
Compass Group (CPG) 318.00p +0.08%
Resolution (RSL) 706.50p +0.28%
FTSE 250 - Risers
Game Group (GMG) 209.00p +15.79%
COLT Telecom Group S.A. (COLT) 206.00p +11.35%
Quintain Estates & Development (QED) 601.50p +8.38%
Abbot Group (ABG) 351.00p +8.25%
Derwent London (DLN) 1,500.00p +7.68%
PV Crystalox Solar (PVCS) 127.00p +7.17%
Brit Insurance Holding (BRE) 232.00p +7.16%
Dana Petroleum (DNX) 1,393.00p +6.91%
Stagecoach Group (SGC) 244.75p +6.88%
BlueBay Asset Management (BBAY) 392.00p +6.81%
FTSE 250 - Fallers
eaga (EAGA) 155.50p -3.72%
Xchanging (XCH) 279.50p -3.37%
WSP Group (WSH) 630.00p -3.23%
Northern Foods (NFDS) 87.00p -2.25%
Britvic (BVIC) 339.00p -2.02%
Carpetright (CPR) 1,015.00p -1.93%
Moneysupermarket.com (MONY) 160.25p -1.69%
Wellstream Holdings (WSM) 990.00p -1.59%
Rank Group (RNK) 100.00p -1.48%
Headlam Group (HEAD) 475.00p -1.40%
