BEST AND WORST PERFORMING SECTORS

The best performing sector last week was insurance, which rose 6.7 per cent, followed by the life insurance sector, which rose 5.85 per cent. Commercial Union, Legal & General and the Prudential registered significant gains. Institutions are struggling to boost their weightings in the life sector ahead of the Norwich Union's flotation in June. Both sectors will see increased interest with the possibility of short-term profits.

The pharmaceuticals sector rose 4.26 per cent on the week. Glaxo was up 4.7 per cent after the company said it was well on track to achieving its double-digit growth in sales by 1999, and was poised to win approval for an asthma drug delivery system in the US.

The worst performing sector was paper, packaging and printing, which fell 4.8 per cent. Arjo Wiggins said turnover fell 4.4 per cent in the first quarter of the year before adjusting for exchange rates. Prices were 9.5 per cent down, reflecting the lower cost of pulp.