Stronger Commodities Lift London

Ivaylo
26 Sep, 2001
New York City

Hanson was the leading advancer in London on Tuesday as takeover rumours hit new heights. Bid speculation has continued to surround the group, with Cemex, the Mexican cement giant that owns RMC, seen as a leading suitor. The other bid story today concerned Amvescap, as talk of a takeover sent its higher. By mid-day, the FTSE 100 advanced 43 points, or 0.75, to 5,841.3.

[R]9:30AM The FTSE advances on strong commodities and merger activity.[/R]
The FTSE 100 was higher by mid-day on Tuesday. The benchmark index advanced 43 points, or 0.75, to 5,841.3.

Advancers

Building materials group Hanson was heading the blue chips once again as bid talk refused to die down. Shares of Hanson advanced 5.16%. The other bid story concerned Amvescap, the Anglo-US fund manager. Talk of a takeover sent its shares 4.1% higher.

The mining sector tracked stronger metals prices to claw back some of the ground lost during the previous session. Xstrata rose 1.7% to, Anglo American gained 1.9% d Rio Tinto advanced 2.2%.

Mitchells & Butler stayed strong, up 1.1% after news of better-than-expected food sales in the wake of smoke-free pubs in Scotland.

Decliners

Tobacco stocks retreated on fears about the impact of a new class action law suit against tobacco companies in the US, which could cost the industry up to $200 billion. British American Tobacco was down 0.15 and Gallaher lost 0.3%. Imperial Tobacco fell 0.1%

Enterprise Inns, the UK biggest pub operator by market value, fell 0.85 on fears about the potential impact of the upcoming smoking ban on its business. It pledged to continue preparing for smoke-free pubs in conjunction with its landlords.

Other news

Mitchells & Butler said sales had grown at a slower rate in Scotland than in England since the smoking ban had come into effect in March, but added that it was preparing for the introduction of the ban in England expected next summer by broadening the appeal of its pubs.

Hogg Robinson, the business travel company, has pulled its planned initial public offering, on unfavorable market conditions.