AGL 39.58 Decreased By ▼ -0.42 (-1.05%)
AIRLINK 131.22 Increased By ▲ 2.16 (1.67%)
BOP 6.81 Increased By ▲ 0.06 (0.89%)
CNERGY 4.71 Increased By ▲ 0.22 (4.9%)
DCL 8.44 Decreased By ▼ -0.11 (-1.29%)
DFML 41.47 Increased By ▲ 0.65 (1.59%)
DGKC 82.09 Increased By ▲ 1.13 (1.4%)
FCCL 33.10 Increased By ▲ 0.33 (1.01%)
FFBL 72.87 Decreased By ▼ -1.56 (-2.1%)
FFL 12.26 Increased By ▲ 0.52 (4.43%)
HUBC 110.74 Increased By ▲ 1.16 (1.06%)
HUMNL 14.51 Increased By ▲ 0.76 (5.53%)
KEL 5.19 Decreased By ▼ -0.12 (-2.26%)
KOSM 7.61 Decreased By ▼ -0.11 (-1.42%)
MLCF 38.90 Increased By ▲ 0.30 (0.78%)
NBP 64.01 Increased By ▲ 0.50 (0.79%)
OGDC 192.82 Decreased By ▼ -1.87 (-0.96%)
PAEL 25.68 Decreased By ▼ -0.03 (-0.12%)
PIBTL 7.34 Decreased By ▼ -0.05 (-0.68%)
PPL 154.07 Decreased By ▼ -1.38 (-0.89%)
PRL 25.83 Increased By ▲ 0.04 (0.16%)
PTC 17.81 Increased By ▲ 0.31 (1.77%)
SEARL 82.30 Increased By ▲ 3.65 (4.64%)
TELE 7.76 Decreased By ▼ -0.10 (-1.27%)
TOMCL 33.46 Decreased By ▼ -0.27 (-0.8%)
TPLP 8.49 Increased By ▲ 0.09 (1.07%)
TREET 16.62 Increased By ▲ 0.35 (2.15%)
TRG 57.40 Decreased By ▼ -0.82 (-1.41%)
UNITY 27.51 Increased By ▲ 0.02 (0.07%)
WTL 1.37 Decreased By ▼ -0.02 (-1.44%)
BR100 10,504 Increased By 59.3 (0.57%)
BR30 31,226 Increased By 36.9 (0.12%)
KSE100 98,080 Increased By 281.6 (0.29%)
KSE30 30,559 Increased By 78 (0.26%)

Britain's top share index ended 1.7 percent higher on Tuesday on hopes US lawmakers would revive a $700 billion bank rescue plan, after earlier posting its biggest monthly decline in 21 years. The FTSE 100 ended 83.7 points higher at 4,902.5, after hitting a session high of 4,953.4 points and falling as low as 4,671 - its lowest level since November 2004.
The UK benchmark plunged 5.3 percent on Monday and has lost more than 13 percent over the month - its biggest monthly decline since October 1987 when it tumbled 26 percent. "We really could have had the mother of all crashes yesterday," said David Evans, market analyst at BetOnMarkets.com. "The fact that we didn't and a floor was found not far below the lows of early September, might just indicate that there's enough in the market to keep it alive."
"However it's difficult to say if this floor was found due to speculation that a washout day would spook Congress into agreement. This belief alone may have been enough to keep markets hanging above the abyss," Evans added. On Wall Street, US stocks rose strongly, recovering from Monday's torrid performance when the Dow Jones industrial average recorded its largest-ever single-day point fall after US lawmakers rejected the bailout plan.
Markets were also boosted by stronger-than-expected US consumer confidence numbers. The index rose in September to 59.8, above an expected 53.0. UK banks ended higher, adding 2.0 percent and recovering from earlier falls on hopes the US financial bailout will be revived. Asian-focused banking groups Standard Chartered and HSBC stood out, up 8 percent and 4 percent respectively on some bargain-hunting after Hong Kong markets recovered.
Lloyds TSB gained 4.3 percent amid market talk that the bank could be trying to renegotiate the terms of its rescue take-over of HBOS. By contrast, HBOS shed 13.8 percent, making it the biggest faller on the FTSE 100 index as dealers cited talk that Lloyds could revise its offer to 0.6 of its shares per HBOS share.
Both banks declined to comment on the talk of a possible renegotiation, but said they were pressing ahead with the acquisition process. Other financials also managed to rally amid some bargain-hunting, with inter-dealer broker ICAP recovering 22.7 percent after a big slide on Monday following a trading update, while Old Mutual added 8.9 percent, and hedge fund Man Group took on 10.2 percent. Heavyweight miners offered some support on sector consolidation hopes, helped by talk a deal for Lonmin could be close, with Xstrata having until October 2 to formally launch a bid.
Lonmin gained 7.9 percent, Xstrata added 8.7 percent, and BHP Billiton, Rio Tinto, Anglo American, and Eurasian Natural Resources put on between 2.1 and 6.7 percent. Tesco added 4.8 percent after Britain's biggest retailer met forecasts with a 10.3 percent rise in first-half profit and said like-for-like sales growth at its UK operations accelerated over the summer months. But clothing retailer Marks & Spencer lost 3.2 percent, ahead of a trading update due on Thursday as nine-month results from Swedish-listed peer Hennes & Mauritz disappointed.
Among mid caps, Enterprise Inns jumped 13.5 percent as the pubs operator delivered an in-line trading update and provided some reassurance in the troubled sector. The group also said it has put on hold plans to convert into a low-tax Real Estate Investment Trust (REIT) because of the turmoil in financial markets.
Enterprise Inns' peers rallied as well, with Punch Taverns up 12 percent, and Mitchells & Butlers ahead 6.4 percent. "There is an argument to suggest that there's quite simply no more value to take out of stocks right now," said Paul Webb, chief dealer at CMC Markets. "But with credit markets seized up and central banks presumably only capable of injecting a finite amount of liquidity, it would be a brave call to suggest that this is the end of any run lower."

Copyright Reuters, 2008

Comments

Comments are closed.