Scottish oil explorer Cairn Energy is set to grab the UK stock market's limelight this week by winning a slot in the FTSE 100 share index on the same day it releases results and updates on its Indian oil finds.
The broader market will seek upbeat guidance from a batch of companies that are struggling to recover from tough trading, with broadcaster ITV, defence firm BAE Systems and Intercontinental Hotels among nine blue chip firms due to release results or updates.
Analysts said with UK interest rates widely expected to be left on hold at a meeting on Thursday more optimistic corporate outlooks are needed to keep shares on the boil.
The FTSE-100 share index has risen for nine of the last 10 days and at midmorning on Friday stood just above 4,500 points, up almost 5 percent in the last three weeks and nudging towards the year's high of 4,601.
"There's a danger that things have moved too far, too fast," said Alex Scott, analyst at Seven Investment Management. "It's been a dramatic move essentially from the bottom of this year's trading range to near the top, with barely a pause for breath, and things haven't changed that much."
BAE has benefited from this year's strength in oil prices due to its key supply contract with Saudi Arabia, but deeper concerns remain. BAE's net debt to rise at the half-year level, although several analysts said its results on Thursday could kick-start its shares.
"Momentum is beginning to turn more positive for BAE," Nick Wilson, analyst at Dresdner Kleinwort Wasserstein, said this week. "A recovery in civil aerospace, good underlying defence growth and hopefully contract problems now solved, offer BAE the opportunity to re-establish more positive profit and share price momentum," he said, as he upgraded the stock to "buy" .
ITV also continues to be hindered by doubt about its recovery, and its shares - trading at 104p each- have lost a quarter of their value since it was formed in February. ITV reports first-half results on Thursday, the same day as smaller rival SMG .
Other blue chips reporting or updating during the week are InterContinental, cigarettes maker Gallaher , recruitment firm Hays , miner Antofagasta and electronics retailer Dixons.
Cairn Energy is due to release half-year results on Tuesday, when investors will seek more insight on the four significant oil finds in north-west India it has unveiled this year.
Cairn's shares have more than trebled this year to 1,500 pence, making it the most successful of Britain's biggest 350 firms and lifting the company's market value to 2.3 billion pounds ($4.1 billion).
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