London close: Footsie rallies as boring Budget ignored
A rather boring Budget from chancellor Alistair Darling did little to stimulate trade in London, leaving it to Standard Life and the mining sector to lead the blue chip index higher.
Darling cut his economic growth forecasts to 1.75-2.25% for this year and 2.25-2.75% for 2009 as he delivered his first Budget Wednesday, although many think that is still too bullish.
A widely expected call for UK energy suppliers to splash out £150m on social tariffs to help poorer customers sent Scottish & Southern Energy, National Grid and International Power south.
Imperial Tobacco was on the back foot as the price of cigarettes rose 11p for a pack of 20, while Mecca Bingo firm Rank headed the mid-cap fallers after the chancellor kept VAT on bingo charges and upped amusement machine licence duty.
But Standard Life surged as the insurer comfortably beat its own targets for last year and added that 2008 has started strongly. Embedded value operating profit before tax rose by 43% to £881m, with diluted operating EPS up 37% to 28.3p.
Other life insurers rose in sympathy, including Old Mutual, Friends Provident and Legal & General. Financials were mostly higher after yesterday's cash injection from major central banks, with Royal Bank of Scotland, Barclays and Man Group in the blue.
HBOS and REIT Land Securities were easier though after going ex-dividend, although drinks giant Diageo closed ahead despite trading without the right to the latest payout.
Miners dominated the Footsie leaderboard, with Kazakhmys rocketing ahead as rival Kazakh metals group Eurasian Natural Resources confirmed it had sounded it out about a bid.
Meanwhile, Rio Tinto secured approval for a US$475m project to increase the annual production of iron ore concentrate by the Iron Ore Company of Canada to 22m tonnes. Antofagasta, Lonmin and BHP Billiton are also among the best performers.
Oil and gas exploration group Tullow Oil saw pre-tax profits more than halve in 2007 due to lower UK gas prices, an increased depreciation charge and exploration write-offs.
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HSBC is to inject $200m of new capital into its Russian operations to finance expansion across all business lines, subject to regulatory approvals.
Shares in AstraZeneca edged higher Wednesday after the pharmaceuticals firm said a trial date has now been set for its patent infringement case relating to its schizophrenia and bipolar disorder (manic depression) treatment, Seroquel.
Elsewhere, property advisor Savills saw revenue up 26% to £650.5m with underlying profit before tax rising 14% to £85.5m.
Precious metals producer Hochschild Mining posted a good set of full year figures and said demand for silver will remain strong in 2008.
French Connection's profits fell again last year, with the fashion chain warning it expects the difficult economic environment to hamper any recovery.
Electrical components maker Laird posted record underlying profits last year, adding that the current year has also started well.
Thor Mining gained a third of its value today on news it has signed an off-take agreement with CITIC Australia Commodity Trading for its Molyhil tungsten-molybdenum project in the northern territory of Australia.
Construction firm Costain is recommending its first dividend in 17 years after it swung into profits for the year to December.
Medical devices company Tissue Science Laboratories almost doubled after it agreed terms of a recommended cash offer from healthcare giant Covidien worth around £38m, or 103.5p per share.
Life sciences company Medical Marketing International shoots up after announcing the appointment of a new non-executive chairman and the termination of the employment contracts of former managing director David Best and his wife, the company's former IT director Margaret Mitchell.
