In London on Tuesday, the FTSE 100 closed 0.3 percent higher to 6,244.0, its highest ending level in five years. Meanwhile, the FTSE 250 set a record high closing level of 10,559.9, a gain of 0.6 percent on the session.

Software maker Misys also had a record high close, adding 3.3 percent to 215¼p on the news that US medical software company Per-Se Technology had recommended a cash bid of $1.2 billion (£630 million) from McKesson Corporation. This had implications for Misys in that Per-Se’s largest shareholder is ValueAct Capital; Misys new chief executive, Mike Lawrie, previously worked for ValueAct, which has been building its holdings in Misys since Lawrie’s appointment was announced in mid-October. ValueAct now holds 5.1 percent of Misys.

In the retail sector, Marks & Spencer was 6.3 percent higher to 696p, also a new record, on higher profits forecasts based on its better than expected interim report.

Metal-related sectors saw advances on the session. With zinc prices at a record high level, Xstrata added 1.3 percent to £24.20. Meanwhile, rumors of bids competition sent steel maker Corus 0.1 percent higher to 465¾p, as speculation ran that Novolipetsk might beat Tata Steel’s 455p per share offer.

Banks were lower, with HBOS down 0.4 percent to £10.90 on a downgrade from “outperform” to “in line” from Cazenove. Standard Chartered dropped 0.5 percent to £14.87 on talk that it could be preparing to purchase ABN Amro’s 40 percent share in Saudi Hollandi Bank.

The London equities markets were higher on Wednesday on gains in the tobacco and oil sectors. The oil sector was higher after US inventory numbers showed that stockpiles of crude oil, gasoline, and heating oil were all lower last week. The FTSE 100 added 0.5 percent to 6,214.6 percent, while the FTSE 250 gained 0.2 percent to close at 10,425.4, another new record.

Imperial Tobacco Group was 1.6 percent higher to £18.55 ahead of its full-year report, due next week. British American Tobacco, which is scheduled to release its third quarter report later on Wednesday, added 2.5 percent to £14.82 on strong results from Reynolds American. BAT holds 42 percent of Reynolds, which also learned that a US appeals court on the federal level will hear arguments concerning whether a case looking for $200 billion from tobacco companies can be conducted as a class action suit. Meanwhile, Gallaher gained 3.1 percent to 884½p on bids rumors and positive comments.

The pharmaceuticals sector was mixed after UBS upgraded the sector to “overweight”. GlaxoSmithKline added 1.5 percent to £15.11 ahead of the announcement of its third quarter results, but AstraZeneca fell 1.2 percent to £35.92.

Chipmaker Wolfson Microelectronics added 6.4 percent to 287¼p on a perceived vulnerability to bids and on an upgrade to “buy” from Bridgewell Securities. Meanwhile, software maker Misys added 2.4 percent to 205p on the news that an activist group of investors from the US had taken a 4.4 percent stake in the company and on a reiteration of a “buy” recommendation from UBS.