Records were set Tuesday in London as both the FTSE 250 and the FTSE All-Share hit new record highs and the FTSE 100 closed at its highest level in six years. The 100 added 0.4 percent to 6,346.3, while the 250 was 0.6 percent higher to 11,479.4 and the All-Share gained 0.5 percent to 3,290.67.
Defense contractor BAE Systems added 2.8 percent on the session to 439¼p after US President George W. Bush asked for record defense spending in his 2008 budget, delivered to Congress on Monday.
Imperial Tobacco added 1.3 percent to £22.14 even though it was the target of a Deutsche Bank downgrade after rumors surfaced that it might receive a bid from Altadis of Spain in cooperation with private equity.
Supermarkets were higher on raised target share prices from UBS and on a report that a group of investors from Qatar had taken a 1 percent stake in J Sainsbury. Sainsbury was 1.3 percent higher to 516 on the report. Tesco added 1 percent to 438½p as UBS hiked its target share price to 550p, while Wm Morrison added 2.6 percent, to a new record share price of 311p, after its target was raised to 360p.
In the telecommunications sector Cable & Wireless gained 3 percent to 179½p, its highest share price in four and a half years, on reports that it could be a target of Deutsche Telekom. Analysts were not convinced of the rumors in the German press, saying that DT is in no position to make offers currently.