News

The Footsie posted one of its biggest ever single-day rises, spurred on by a strong performance from financials and miners. The blue-chip index finished close to its highest level for the day despite an indifferent morning trading session across the pond in New York.

Insurance stocks were given a boost by reports in The Times that the Financial Services Authority is looking at ways to make life easier for insurers by easing rules on accounting and capital requirements. South African insurer Old Mutual led the sector higher, closely followed by Aviva, still benefiting from its strong results yesterday. Car insurer Admiral had another good day, following on from better than expected results late last week. Friends Provident defied the trend, however, giving up large chunks of the gains made late in the day yesterday.

HBOS continued to close the gap between its trading price and the value implied by Lloyds TSB's all-share offer. HBOS is reportedly planning a two-year euro benchmark bond backed by the UK government's guarantee.

Standard Chartered advanced strongly despite a mixed reception from brokers to yesterday's results. Citigroup has cut its price target for the Asia-focused bank from 750p to 650p, and recommends selling the shares, while Credit Suisse has downgraded its rating to "neutral" from "out-perform" and has cut its target price from 1600p to 1000p. UBS is a fan of the stock, however, and has upgraded it to "buy" from "neutral".

Oil and gas firm Cairn Energy reported production of 74,000 barrels of oil equivalent a day in the third quarter. The Edinburgh-based firm, whose operations are in India, Tunisia, Albania and elsewhere, said it achieved an average price of $70.06 a barrel of oil equivalent in the period.

Elsewhere in the oil sector Royal Dutch Shell announced its chief financial officer, Peter Voser, is to succeed Jeroen van der Veer as chief executive officer of the Anglo-Dutch group in July of next year.

The board room merry-go-round is starting to pick up speed as mining giant Rio Tinto announced that Paul Skinner will not seek another term as chairman when his contract runs out at the end of 2009. Skinner is widely expected to take over from Peter Sutherland as chairman of BP when Sutherland steps down next year.

Stagecoach was a rare blue-chip faller, despite reporting sharply higher revenues in most of its bus and rail divisions. The fall might have more to do with the stronger oil price than the results. Broker Investec rates the shares a "hold" and has set a price target of 250p for the stock.

Pharmaceuticals group Shire reported sharply higher revenues over the third quarter and said it remains confident on the full year and beyond. Turnover came in towards the top end of analysts' expectations.

Iron ore pellet producer Ferrexpo slumped after warning that a significant reduction in both steel demand and output would depress its sales by around 5% to 10% in 2008. The group has put a hold on numerous strategic initiatives, prompting the resignation of its chief executive officer.

Bluetooth specialist CSR reported third quarter revenue in line with previous guidance at $205.5m, but warned that fourth quarter revenue could fall as low as $140m.

Environmental consultancy group RPS said the robust trend has continued and it remains well positioned to deliver results for the full year in line with expectations. Broker KBC Peel Hunt likes the stock and has retained its "buy" recommendation. "The acquisition pipeline remains healthy and more transactions are expected in H2 2008. In light of recent share price falls we remain positive on the shares and retain our buy recommendation," said KBC analyst Andrew Nussey.

Oil and gas firm Melrose Resources has reduced its 2008 net entitlement production guidance due to a series of delays. The group said it is "prudent to reduce its 2008 net entitlement production guidance from 19,200 boepd (barrels of oil per day) to 18,300 boepd."

A subsidiary of the mainland European newspaper giant Mecom is to dispose of its interest in the Dutch search engine ilocal after the business failed to achieve profitability. Koninklijke Wegener had bought 49% of ilocal Holding from Yellow Bear Holding as well as a 17.5% minority interest in ilocal International.

Managed Support Services, which provides building services, said full year figures will "comfortably exceed" current market expectations. The group upped its guidance for the year after it saw "good" first half trading.

Recruitment firm Hays was wanted after being upgraded by UBS from "sell" to "neutral".

Chip licensing technology firm Arc International announced that one of the top 10 system-on-chip design companies in Taiwan is incorporating Arc's low power solution into cellular baseband designs targeting the worldwide cellular handset market.

Environmental engineering company Tinci plummeted after it warned a decline in sales will lead to a significantly reduced profit in the second half of 2008. Profit for the year ending 31 December 2008 is expected to be similar to that for the six months to 30 June 2008. Tinci blamed the situation on the postponement or withdrawal of desulphurisation projects at power stations in China.
FTSE 100 - Risers
Old Mutual (OML) 50.80p +30.26%
Standard Chartered (STAN) 910.00p +30.00%
HBOS (HBOS) 88.00p +28.28%
Admiral Group (ADM) 1,090.00p +25.50%
Xstrata (XTA) 887.00p +25.11%
Aviva (AV.) 324.00p +25.10%
Anglo American (AAL) 1,379.00p +20.86%
Fresnillo (FRES) 125.80p +19.13%
Prudential (PRU) 295.25p +18.93%
Rio Tinto (RIO) 2,677.00p +18.56%

FTSE 100 - Fallers
Friends Provident (FP.) 60.00p -7.69%
Stagecoach Group (SGC) 192.20p -6.47%
Liberty International (LII) 620.50p -1.90%
FirstGroup (FGP) 417.25p -0.48%
Reckitt Benckiser Group (RB.) 2,545.00p -0.27%