Press Association
Friday 12th March 2010
London shares have made tentative progress amid hopes that the European Union is planning a rescue package for the debt-laden Greek economy.
Speculation that officials will provide some form of support in order to prevent the crisis from spreading to other vulnerable countries ensured the Footsie climbed 12.2 points to 5104.6.
The improvement also reflected hopes for a modest recovery on Wall Street after the Dow Jones Industrial Average closed at its lowest point since November on Monday night.
As well as causing the Dow to close below the 10,000 barrier, the worries over a sovereign debt default by Greece - and its wider impact on the financial system - sent the euro plunging against the dollar. It staged a modest recovery on Tuesday.
There was little in the way of corporate news to deflect attention from the ongoing economic worries.
Thomson and First Choice owner TUI Travel was 0.2p higher at 258.1p after it reported a 9% rise in average selling prices and predicted that it may be over the worst in terms of market conditions. TUI posted a wider first quarter loss but said there had been a significant improvement in profitability in the current quarter. Rival Thomas Cook, which is due to post a trading update on Thursday, added 1.1p to 226.6p.
Property firms featured on the Footsie risers board after a well received third-quarter update from British Land, which added 13.2p to 451.3p.
The company revealed a 8.2% rise in property values in the quarter and said footfall in its retail parks and Meadowhall shopping centre near Sheffield rose by more than the national average at 5%. Land Securities followed suit, with a 17p rise to 639p, or 3%, while Segro cheered 3.4p to 304.1p.
Miners maintained their strong start to the week after Monday's upbeat fourth quarter figures from Xstrata and Randgold Resources, which said it had been boosted by gold prices soaring to record levels. Xstrata rose another 29.7p to 1013.5p and Rio Tinto lifted 85p to 3150.5p, but Randgold Resources consolidated its position with a modest drop of 7p to 4473p.
The biggest gain in the FTSE 250 Index was posted by property website Rightmove after it raised profit expectations for 2010 and said it achieved a substantial increase in average spend per advertiser. Shares jumped 27.5p to 552.5p, a gain of 5%.
