Both the FTSE 100 and the FTSE 250 were higher in London on Monday. The 100 added 0.1 percent to 6,317.9 on gains in the oil and telecommunications sectors, while the 250 gained 0.6 percent to 11,406.5.
In the oil sector, BP was 1.2 percent higher to 541½p on an upgrade to “buy” from Goldman Sachs before the oil company presents its full-year report on Tuesday. It was rumored that BP could announce a big increase in dividends when it presents its report. Elsewhere in the sector, Royal Dutch Shell gained 1 percent to £17.24.
In the telecommunications sector, Cable & Wireless added 1.6 percent to 174¼p on a target share price of 200p from Credit Suisse. C&W has gained 60 percent since June 2006. BT Group also received positive broker comment in the form of a repeat of a “buy” rating from Citigroup, which also raised the telecom’s target share price from 315p to 335p. The remarks and upgrade sent BT 1.2 percent higher to 315¾p.
Johnson Matthey, which has interests in both precious metals and pharmaceuticals, added 6.1 percent to £15.83 on an upgrade to buy from UBS, which also set a target share price of £18. In a lengthy report, UBS said that JM will likely see five years of earnings growth in double digits, mostly from growth in its autocatalyst division as the US and Europe set higher emissions standards on diesel vehicles, as well asl from a new prostate cancer drug which is currently in the final stages of clinical trials.