London investors look to extend rally

The British stock market should manage more gains after striking its highest levels since before the spectacular collapse of US investment bank Lehman Brothers in 2008. The market's FTSE 100 index of leading shares rose 4.6 percent over the past five days to end the week at 5,599.76 points - its best since September 2008 - after publication of an upbeat US jobs report.
The FTSE also hit 5,605.38 in intra-day trade - which was a similar 18-month high point. Next week, investors will continue to seek direction from outside Britain, as the country's earnings seasons draws to a close.
Exporting companies trading on the FTSE this week benefited from a weak British pound, which made their goods cheaper for buyers abroad, traders said.
Sterling hit a nine-month low against the dollar on Monday on fears that an upcoming general election could lead to a hung parliament with no single party commanding a majority.
Dealers sold sterling after an opinion poll suggested that the main opposition Conservatives' long-standing double-digit lead over the ruling Labour Party had all but vanished to just two percentage points.
The pound fell sharply in reaction, reaching as low as 1.478 dollars and below 1.10 euros. The biggest corporate story in Britain concerned Prudential, which on Monday announced it had agreed to buy the Asian arm of US peer AIG for 35.5 billion dollars in the insurance sector's biggest ever take-over.
Prudential is set to become south-east Asia's biggest insurer after the British firm agreed to pay the equivalent of 26 billion euros for AIA, making it the industry's biggest ever acquisition, according to Dealogic.
The British company's share price took a tumble however on news that it would look to raise 20 billion dollars in a share issue to help fund the deal.
The news highlighted a pick-up in cross-border take-over activity since the start of the year as the global economy recovers from its deep downturn.
Prudential's deal, which will see the group double its market value, came one day after German pharmaceutical giant Merck KGaA agreed to buy US biotechnology firm Millipore Corporation for 7.2 billion dollars. In February, US group Kraft Foods snapped up British confectioner Cadbury in another multi-billion-dollar deal.