Top UK shares closed firmer on Friday, extending their winning streak to four straight sessions but with momentum slowing as investors consolidated some gains, while media shares were in demand after results from BSkyB. Shares in Britain's top pay-TV firm closed 4.1 percent higher as first-quarter subscriber numbers beat forecasts. The buzz around BSkyB drew broadcaster ITV up 3.4 percent and brought the whole media sector into focus, with publisher Pearson up 2.7 percent.
The FTSE-100 index closed 17.0 points higher at 4,793.9, making a 1.1 percent rise on the week and another 29-month high.
The index has advanced 3.6 percent since the start of November as oil prices have fallen and uncertainties over interest rates and the US Presidency have dissipated.
"You can understand the logic. It makes some of the stocks that have been beaten up, the airlines and some of the high beta companies a bit more desirable," said Khuram Chaudhry, UK Strategist at investment bank Merrill Lynch.
Chaudhry took a cautious view of recent speculation that the FTSE could drive higher in the run up to the year-end, possibly taking out highs above 5,000 last seen in June 2002.
"This is still a stock-picking market. You don't have to buy defensive names but as long as you're exposed to areas of the market that have sound fundamentals you will be rewarded," he said.
Market watchers said investors had been looking to pick up "high beta" stocks - those that move the most when the market moves in either direction - in expectation of further gains. Fund managers Amvescap, 4.6 percent firmer, and Man Group, up 3 percent, are often seen as proxies for the general market and were cited as benefiting from high-beta buying on Friday.
Shares in British mortgage bank Abbey National gained 0.6 percent before its exit from the FTSE-100. Its shares will be removed after Friday's close, when a 9.65 billion pound ($17.75 billion) take-over by Spain's Santander is sealed.
Index compiler FTSE said on Wednesday that UK steelmaker Corus Group will replace Abbey in the top 100. Corus was up 2.8 percent.
Insurer Royal & Sun Alliance fell again, adding a 2.3 percent fall to Thursday's 2.9 percent decline, which was triggered by its warning that it might have to set aside more money to meet potentially adverse workers' injury claims in the United States.
Among companies affected by broker research, medical devices firm Smith & Nephew rose 1.7 percent after CSFB upped its share price target after better-than-expected results last week. Anglo-Dutch computer services firm LogicaCMG closed 3.6 percent lower after Deutsche Bank downgraded its shares to "hold" from "buy".
Comments
Comments are closed.