Footsie takes heart from confidence in New York

MARKET REPORT

The stock market enjoyed the crash that never was. Fears Grey Friday would be followed by Black Monday were quickly swept aside as Footsie built on a confident opening.

By the close the index was up 48.6 points, returning above 4,000 and reclaiming more than half Friday's slump. Government stocks rose by around pounds 1.

On Friday US influences spooked the market. US banking chief Alan Greenspan created alarm when he talked about the "irrational exuberance" of stock markets and shares around the world collapsed, expecting New York to follow their example.

But American investors, for once, were made of sterner stuff and New York was rather more robust than many expected. When London opened yesterday the betting was on New York staging a rally.

It did not disappoint. And with Hans Tietmeyer, president of the Bundesbank, talking about "some overreaction" to Mr Greenspan, there was not an audible dissenting voice to hinder Footsie's comeback.

The crash could, some reasoned, be something of a blessing in disguise, removing much of the pressure for another interest rate increase. The monthly Ken and Eddie meeting occurs tomorrow and the Chancellor could feel his case for unchanged rates has been reinforced by Friday's shocks. With the Bank of England governor seemingly less keen to press for higher charges tomorrow's get together looks likely to be a non event.

Still the market could face a turbulent week. New York's confidence has been ruffled and the splits in the Tory ranks have not even been papered over. Thursday's Barnsley election result will wipe out the Government's majority.

Last week's slide, with Footsie at one time down 168.5 points, has already hit two flotations. Discovery Inns, a managed and tenanted pubs chain, and Wise Speke, the stockbroker, have postponed their plans to sell shares to investors.

The 48.6 index gain was scored on the back of thin trading. Few investors were prepared to chance their arm; content to sit on the sidelines until the still hazy investment scene becomes somewhat clearer.

BAT Industries led the Footsie gainers, scoring a 25p gain to 476.5p. A 60-page buy circular from Merrill Lynch helped.

BTR, the only blue chip to resist Friday's onslaught, continued to stretch from its year's low, gaining 11.5p to 249p.

Cadbury Schweppes, the soft drinks to sweets group, melted 9.5p to 477p. There were stories of profit downgradings as the company started a series of investment meetings. ABN Amro Hoare Govett was said to be among the securities houses to lower its estimates.

Tate & Lyle, the sugar group, was another in presentation mode - off 7p to 458p.

Scottish Television shaded 1p to 679p. It has discovered a large shareholder in the shape of Chase Nominees. Apparently Chase has acquired 3.85 million shares (6.34 per cent) but Scottish does not know when, from where or the identity of the beneficial owner. It only discovered the extent of Chase's involvement when the nominee house responded to a 212 notice which obliges a company to reveal its shareholding.

Sedgwick, the insurance broker, was given a takeover whirl with US groups named as likely predators. The shares gained 5p to 126.5p. Commercial Union rose 4p to 664.5p on bid speculation; GRE was another in the bid arena, up 10p at 273p.

The story of an Abbey National deal with Prudential Corporation continued to go the rounds with Abbey up 10p to 691p and the Pru up 4.5p to 485.5p. Greycoat, the property group, fell 2p to 154p as Moorfield Estates, a much smaller group, abandoned its ambitious takeover bid. Moorfield firmed to 30p.

The Labour Party's latest move to tap into the profits of utilities produced some spillage among the waters but electricities were generally a few pence higher. BT slipped 3.5p to 393.5p.

Bass shrugged off the not-unexpected referral of its bid for Carlsberg- Tetley to the Monopolies and Mergers Commission, gaining 14.5p to 803.5p as the market decided to concentrate on the merits of a possible US hotel deal. Other brewers were strong, with Whitbread up 13.5p to 770p and Scottish & Newcastle 19p to 672.5p.

Lanica Trust, aiming for a mail order future, posted a 195p gain to 895p; the shares have risen from 56p since it was first realised Andrew Regan, ex-Hobsons, was involved. The three major shareholders have sold 825,000 shares following a pledge to increase the outside interest.

Taking Stock

rStruggling Owen & Robinson held at 11.25p. Former chairman Maurice Dwek has sold 1.6 million shares and now has a 1.95 per cent stake. Egon von Greyerz, the former Dixons executive, is the new leading light at O&R and is thought to be keen to develop the remaining sportswear side.

rParkwood, involved in park maintenance and leisure contracts, has picked up work worth pounds 10m since publishing its prospectus and now has contracts valued at pounds 68m under its belt. Its shares, placed at 65p by Wise Speke, are due to start trading today.

rSunderland FC's flotation by Charterhouse Tilney is apparently going well with the offer oversubscribed and likely to be fixed near the top of the price range. Dealings should start on Christmas Eve.

Travel
travel
Voices
A family sit and enjoy a quiet train journey
voicesForcing us to overhear dull phone conversations is an offensive act, says Simon Kelner
Arts and Entertainment
The cast of The Big Bang Theory in a still from the show
tvBig Bang Theory filming delayed by contract dispute over actors' pay
Sport
England celebrate a wicket for Moeen Ali
sportMoeen Ali stars with five wickets as Cook's men level India series
PROMOTED VIDEO
News
Morrissey pictured in 2013
people
News
peopleGuitarist, who played with Aerosmith, Lou Reed and Alice Cooper among others, was 71
Travel
travel
News
Robyn Lawley
people
News
people
News
i100  ... he was into holy war way before it was on trend
News
ebookA unique anthology of reporting and analysis of a crucial period of history
Arts and Entertainment
High-flyer: Chris Pratt in 'Guardians of the Galaxy'
filmThe film is surprisingly witty, but could do with taking itself more seriously, says Geoffrey Macnab
News
people
Life and Style
food + drinkVegetarians enjoy food as much as anyone else, writes Susan Elkin
Life and Style
lifeDon't get caught up on climaxing
Life and Style
tech
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

1st Line Support Technician / Application Support

£20000 - £24000 per annum: Harrington Starr: A leading provider of web based m...

Team Secretary - (Client Development/Sales Team) - Wimbledon

£28000 - £32000 per annum: Ashdown Group: Secretary (Sales Team Support) - Mat...

Accountant / Assistant Management Accountant

Competitive (DOE): Guru Careers: We are looking for an Assistant Management Ac...

Senior Investment Accounting Change Manager

£600 - £700 per day + competitive: Orgtel: Senior Investment Accounting Change...

Day In a Page

Save the tiger: The day America’s love of backyard tigers led to a horrific bloodbath

The day America’s love of backyard tigers led to a horrific bloodbath

With only six per cent of the US population of these amazing big cats held in zoos, the Zanesville incident in 2011 was inevitable
Samuel Beckett's biographer reveals secrets of the writer's time as a French Resistance spy

How Samuel Beckett became a French Resistance spy

As this year's Samuel Beckett festival opens in Enniskillen, James Knowlson, recalls how the Irish writer risked his life for liberty and narrowly escaped capture by the Gestapo
We will remember them: relatives still honour those who fought in the Great War

We will remember them

Relatives still honour those who fought in the Great War
Star Wars Episode VII is being shot on film - and now Kodak is launching a last-ditch bid to keep celluloid alive

Kodak's last-ditch bid to keep celluloid alive

Director J J Abrams and a few digital refuseniks shoot movies on film. Simon Usborne wonders what the fuss is about
Once stilted and melodramatic, Hollywood is giving acting in video games a makeover

Acting in video games gets a makeover

David Crookes meets two of the genre's most popular voices
Could our smartphones soon be diagnosing diseases via Health Kit and Google Fit?

Could smartphones soon be diagnosing diseases?

Health Kit and Google Fit have been described as "the beginning of a health revolution"
Ryanair has turned on the 'charm offensive' but can we learn to love the cut-price carrier again?

Can we learn to love Ryanair again?

Four recent travellers give their verdicts on the carrier's improved customer service
Billionaire founder of Spanx launches range of jeans that offers

Spanx launches range of jeans

The jeans come in two styles, multiple cuts and three washes and will go on sale in the UK in October
10 best over-ear headphones

Aural pleasure: 10 best over-ear headphones

Listen to your favourite tracks with this selection, offering everything from lambskin earmuffs to stainless steel
Commonwealth Games 2014: David Millar ready to serve up gold for his beloved Scotland in the end

Commonwealth Games

David Millar ready to serve up gold for his beloved Scotland in the end
UCI Mountain Bike World Cup 2014: Downhill all the way to the top for the Atherton siblings

UCI Mountain Bike World Cup

Downhill all the way to the top for the Atherton siblings
Save the tiger: The animals bred for bones on China’s tiger farms

The animals bred for bones on China’s tiger farms

The big cats kept in captivity to perform for paying audiences and then, when dead, their bodies used to fortify wine
A former custard factory, a Midlands bog and a Leeds cemetery all included in top 50 hidden spots in the UK

A former custard factory, a Midlands bog and a Leeds cemetery

Introducing the top 50 hidden spots in Britain
Ebola epidemic: Plagued by fear

Ebola epidemic: Plagued by fear

How a disease that has claimed fewer than 2,000 victims in its history has earned a place in the darkest corner of the public's imagination
Chris Pratt: From 'Parks and Recreation' to 'Guardians of the Galaxy'

From 'Parks and Recreation' to 'Guardians of the Galaxy'

He was homeless in Hawaii when he got his big break. Now the comic actor Chris Pratt is Hollywood's new favourite action star