The London equities markets were higher again on Tuesday, with the FTSE 100 gaining 0.3 percent to 5,851.2 and the FTSE 250 also up 0.3 percent to 9,248.5. Volume was up from Monday, with 2.6 billion shares changing hands during the session.
Boots Group and Alliance UniChem were each 2.1 percent higher, to 766p and £10.18 respectively. The gains came ahead of Monday’s scheduled completion of a merger between the two companies. JP Morgan issued a positive comment.
Brewer Scottish & Newcastle was up 2.4 percent to 533½p ahead of an expected positive half-year report due next month.
British Airways added 3 percent to 384¼p, a five-year high, as oil prices fell and in anticipation of positive earnings news next month. Morgan Stanley upped its target share price on BA to 480p and said that revenue growth predictions will have to be increased by at least 7 percent after the air carrier releases its next report on August 4.
In the pharmaceutical sector, Shire gained 2.9 percent to 852½p on the news that it has gained permission to sell its treatment for Hunter syndrome in the United States.
Cadbury Schweppes, which issues its half-year report on August 2, dropped 1.4 percent to 515p on rumors that it will issue a profits warning. The talk was based at least partly on ABN Amro’s lowered forecast, in which it cited rising costs and a recent salmonella problem in explaining its position.
Among small caps, Central African Mining & Exploration Company (Camec) was up 3.5 percent to 59p. Credit Suisse initiated coverage on Camec with an “overweight” rating and a target share price of 100p. Camec is starting to mine copper and cobalt in the Democratic Republic of Congo.