In London this week, the FTSE 100 was up 4.5 percent for the largest weekly percentage gain since March 2003. Friday’s gain was 0.8 percent, and the 100 closed out the week at 5,974.9.
Not all companies posted gains on the week, however. In the insurance sector, Prudential lost 3 percent over the week to 577½p on an unimpressive interim report. Prudential has now lost 22 percent since March, when it turned down an offer from Aviva. Also down was Intercontinental Hotels Group, which lost 4.6 percent to 858½p after Starwood Hotels in the US warned of coming weakness in the second half of the year.
Companies that deal in biofuels were up on the week. Morgan Stanley commenced coverage on two of the companies, Biofuels Corporation and D1 Oils, on Friday, with both companies receiving “equal weight” ratings. Biofuels Corporation was up 7.7 percent to 118½p, while D1 gained 2.6 percent to 251¼p. D1 was also helped by talk of a takeover bid from BP.;
Boots and Alliance UniChem were both up on the eve of their merger as Alliance Boots. On their last day of trade as separate entities, Alliance UniChem was 4.1 percent higher to £10.68 and Boots gained 4.4 percent to 806½p.
Xstrata was the biggest gainer in the blue chips, adding 7.4 percent to £23.01 on the news that Inco has pulled out of the bidding for Falconbridge of Canada, leaving Xstrata an open field for a takeover.