The FTSE 100 closed at its highest level in nearly six years on Friday, ending at 6,260, a gain of 0.5 percent on the day and 1.7 percent higher than it began the week. The FTSE 250 added 0.3 percent on the day to close at a record high of 11,086, a gain of 1.1 percent on the week.

Defense aerospace company BAE Systems saw a gain of 6.9 percent to 424½p after the Serious Fraud Office ended an investigation into Al Yamamah arms deals with Saudi Arabia. The probe, which lasted for two years, was responsible for a delay in the signing of a Saudi order for Eurofighters.

Prudential was 2.1 percent higher to 710½p after rumors that it will free up nearly £10 billion in its orphan estate that is no longer needed to meet obligations and return some of that money to shareholders.

In the telecommunications sector BT Group added 3.3 percent to 315p, its highest share price since September 2001.

British Land gained 2 percent, to £16.62 on talk that an overseas billionaire is looking to buy.

Reckitt Benckiser was 1.6 percent higher to £24.11 after UBS upgraded the household goods group to “buy”, citing growth potential in 2007.

Among losers on the day, Cairn Energy dropped 1.6 percent to £19.14 on rumors that the IPO of Cairn India was not as successful as had been hoped and that shares would be priced at the low end of the stated range.

In London on Monday, the FTSE 100 was 1.2 percent lower to 6,050.1, its lowest close since early October and its largest one day percentage decline since the end of September. Meanwhile, the FTSE 250 also declined, dropping 0.9 percent to 10,493.6.

The retail sector saw declines on slow sales for clothing retailers due to mild weather so far this autumn. Debenhams dropped 1 percent to 194p, while Next fell 2 percent to £17.94. Rumors have underlying sales at Next down by up to 20 percent year-on-year.

In the steel sector, Corus was 1 percent lower to 499½p on worries that pension fund trustees might hold up merger talks with CSN of Brazil. Elsewhere, concerns that the government of Saudi Arabia might pull out of deal to buy 72 Eurofighter planes sent BAE Systems down 3.1 percent to 391p/

The 250 was saved from further declines by advances in the homebuilders sector when Wilson Bowden gained 14.6 percent to £20.98 after it said it has received several takeover inquiries. The mid-caps index was also helped by the news that First Choice Holidays is talking about selling its package tour operations to My Travel. My Travel was 7.1 percent higher to 214p, while First Choice gained 12 percent to 257p.

The London equities markets were lower on Wednesday ahead of the four-day Thanksgiving Day weekend in the United States. The FTSE 100 dropped 0.7 percent to 6,160.3, while the FTSE 250 fell 0.6 percent to 10,687.7.

Ladbrokes was 1.1 percent higher on the session to 397¼p as rumors circulated that private equity might be interested in making a bid for the bookmaker. Also up was British Airways, which added 2 percent to 491p on the news that Qantas Airways of Australia had received a $7.7 billion offer. Specialty chemicals company ICI was 9.3 percent higher to 423p as investors speculated that the sale of its Quest unit leaves it open to bids.

Plumbing and constructions materials company Wolseley fell 1.6 percent to £11.68 ahead of its annual meeting next week. Analysts are worried that the plumber might be forced into a restructuring because of the slowdown in the US housing market.

In the defence sector, BAE Systems dropped 0.4 percent to 414½p amid concerns that Saudi Arabia could cancel the contract for the Al Yamamah 3 fighter plane.

Among media companies, BSkyB was 0.7 percent lower to 531p, while ITV fell 2.2 percent to 109½p on reaction to its rejection of an offer from NTL. In addition, US fund manager Fidelity sold its 11 percent stake in ITV to BSkyB last week and then bought back 58.3 million ITV shares Monday for a much lower price per share; however it appeared that Fidelity had stopped buying shares.

Miners took the London equities markets higher on Monday as the FTSE 100 added 0.2 percent to 5,890.2 and the FTSE 250 gained 0.1 percent to 9,799.5. Retailers also saw gains.

The mining sector, which has been on the decline recently, was up at least partly on talk that a Brazi’s CVRD had said it was interested in linking up with Xstrata to break up Anglo-American. Xstrata added 2 percent to £22.05. Anglo-American and Vedanta Resources each were 3 percent higher, to £21.75 and £12.58 respectively. Kazakhmys gained 4.9 percent to £12.66.

PartyGaming was the biggest winner on the 100, adding 6 percent to 106p on the hope that the US senate will not act on a bill outlawing online gambling before elections in November.

Among retailers, Marks & Spencer was 0.3 percent higher to 626p after Deutsche Bank increased its target share price to 750p in anticipation of a positive interim report, due November 3. William Morrison added 0.5 percent to 232p after Deutsche Bank raised the supermarket chain’s recommendation to “buy”. Kingfisher was also up, by 1.4 percent to 247p, on positive comments from Goldman Sachs.

Defense contractor Chemring debuted on the 250 by adding 5.5 percent to £13.93, at least partly on talk that BAE Systems is interested in making a bid. BAE, however, dropped 1 percent on the session to 380¾p.

Equities markets in London were mixed on Thursday, with the FTSE 100 dropping 0.1 percent to 5,770.9 but the FTSE 250 up by 22.8 points to 9,207.2.

The aerospace sector managed gains on the day. Ultra Electronics, which supplies targeting systems for fighter aircraft, added 15.1 percent to £11 on bids rumors. BAE Systems was up by 1.8 percent to 347¼p, while Rolls Royce advanced by 1.1 percent to 411¼p.

Airlines also saw their shares advance. British Airways was up 3 percent to 368¼p on anticipation of broker upgrades after it reports its quarterly figures next month and as oil prices declined. Meanwhile, EasyJet gained 4.7 percent to 436½p.

BSkyB advanced by 2.5 percent to 544¼p, after its chief executive presented information on its new broadband business to Deutsche Bank.

The internet gaming sector did not fare as well. SportingBet dropped 3 percent to 174¾p, while PartyGaming was 7.4 percent lower to 87¼p and 888 Holdings fell 9.4 percent to 161p, all on concerns that US shareholders will sell their holdings now that the US Department of Justice is taking measures against gambling on the internet.

Other big losers included MFI Furniture, which was down 20 percent to 85p, and Colt Telecom, 23.3 percent lower to 436½p.

London equities markets were down on Thursday as the FTSE 100 lost 22.8 points to 5,849.3 and the FTSE 250 dropped 9.5 points to 9.462.7. Much of the declines could be attributed to losses by Reuters and weakness in the oil sector.

Reuters was down 10.1 percent to 405¾p despite revenue and profits reports that were about as expected.

Some retailers saw gains on the day. Beauty products retailer Body Shop was up 12.2 percent to 275p on a confirmation of the report that French group L’Oreal is thinking of bidding for the company, even though no firm offer has yet been made. Home furnishing and fashion retailer Laura Ashley, meanwhile, advanced by 12.9 percent to 17½p on an announcement that full-year profits will be higher than had been forecast.

Otherwise, the markets saw a series of declines on the day. In the telecommunications sector, Colt Telecom dropped 5.4 percent to 61½p after it announced a new share offering to raise equity. Investec repeated its “sell” recommendation on the company’s shares and analysts questioned the need and timing for the new offering. Meanwhile, telecommunications testing equipment firm Spirent declined by 2.9 percent to 51.3p after it announced that its full-year pre-tax profit was £4.9 million, much lower than the figure of £15.4 million from the previous year.

Defense contractor BAE Systems dropped 2.2 percent on the day to 437½p on concern over problems with its pension plan.

Utility Centrica dropped 1.1 percent to 293p after the parent company of British Gas reported its annual earnings were down 4 percent due to higher interest and tax bills. It said that it could not guarantee that gas prices would not go up.