London investors look to extend strong run this week

10 Apr, 2006

Britain's stock market, fresh from reaching its highest level for more than five years, will seek further momentum in shortened trading next week, as investors take apart new data and earnings updates.
On Friday, London's FTSE 100 index of leading shares ended the week at 6,026.1 points - a rise of 1.03 percent or 61.5 points from the previous week.
The FTSE 100 on Thursday had reached 6,073.30 points - the highest intra-day level since February 2001 - as investors reacted to restructuring news from telecoms giant Vodafone and ongoing strength in miners.
Thursday's peak remained about 12.0 percent below the FTSE 100's record high of 6,930.20 points reached in 1999 at the height of the dot.com bubble.
On Friday, London FTSE 100 index closed down 0.32-percent at 6,026.1 points on profit-taking.
Market commentators said that Friday's pullback from the multi-year peak was owing to a dearth of merger and acquisition news.
In particular, there were no developments following recent press reports over a possible take-over of British bank Alliance and Leicester by French peer Credit Agricole, analysts at the Sucden brokerage said.
"A lack of bids emerging for UK companies, including Alliance and Leicester after news failed to emerge from speculation that it could be approached by rivals such as Frances Credit Agricole, led to a pullback," they said.
They also noted, however, that "vague speculation" had emerged of a bid for Barclays, Britain's third-biggest bank, by a US group.
A formal take-over offer for BAA by a consortium led by Spanish construction giant Grupo Ferrovial failed to set the market alight on Friday after the British airports operator rejected the 8.75-billion-pound (12.56-billion-euro, 15.32-billion-dollar) bid.
The British stock market and its rivals across the globe have in recent weeks been lifted to multi-year high points on strong company earnings, as well as take-over bids and rising speculation.
Regarding economics data, investors were awaiting next week monthly figures on British producer prices, trade and unemployment.
Trading updates were expected from British retailers Marks and Spencer and GUS.
The stock market shuts next Friday, owing to the four-day long Easter holiday weekend.

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