FTSE Higher On Utilities

Ivaylo
14 Sep, 2006
New York City

Confirmation from AWG that it had received a preliminary approach that could lead to an offer for the firm boosted the sector. Resources stocks also helped boost the FTSE on the back of a strong performance in base and precious metals. BHP Billiton, Rio Tinto, Anglo American and Kazakhmys all advanced. By mid-day, GMT, the FTSE was up 31.1 points, or 53%, at 5,923.3.

[R]9:30AM The FTSE 100 in London advanced by mid-day on utilities.[/R]
The FTSE 100 in London was higher by mid-day. The benchmark index was up 31.1 points, or 53%, at 5,923.3. Confirmation from AWG that it had received a preliminary approach that could lead to an offer for the firm lifted the sector, with advances of 3.3% for Kelda Group 2.2% for Severn Trent 2.65 for United Utilities and 4.6% for Northumbrian Water.

Oil producers, BP and Shell gained after crude oil rebounded above $64 on fresh supply concerns. BG Group gained 3%, after it emerged as one of four firms short-listed to buy a 30% stake in an Indian gas field. Wolseley climbed 2.6% after Deutsche Bank raised its target price on the stock on the potential for a rebound in the U.S housing market.

Kingfisher, home improvement stores company, rose 2.8% after reporting a smaller decline in first-half profit than forecast. Also among the mid-cap advancers, Countryside Plc, surged 12.6% after investment fund 3i Investments Plc said it planned to approach the company about a bid.

GUS shed 1.7% on worries that the sale price of its Experian unit implies significant dilution of GUS shares, and also as results fail to dispel concerns around its UK retail business. GlaxoSmithKline also declined, shedding 0.65 after a new diabetes drug from rival firm Novartis AG was found to cut blood sugar levels as much as Glaxo''s established medicine Avandia and without the side effects.

Premier Foods led the mid-cap decliners, dipping 4%, following its announcement that it was no longer in talks to buy businesses from United Biscuits, paving the way for rival bidder, private equity firm Blackstone, to win a hard-fought takeover battle.

The U.K. plans to prevent any buyer of London Stock Exchange Plc from importing rules to the British market due to worries that a fresh takeover bid by Nasdaq Stock Market Inc. may spur changes to regulation.