Market report: Friday close

By Mickey Clark for MailOnline
Updated: 12:05 EDT, 13 July 2007

The FTSE 100 index raced back above 6700 today in response to a stonking run in New York that saw the Dow set a new record overnight.

Footsie hit a seven-year high of 6754.1 before coming back a little to close at 6716.7, up 19.0 points. The stupendous US performance - the main index notched up its biggest points gain since 2002 - triggered a feelgood factor around the world, with most of the main Asian bourses posting significant rises.

It was welcome relief for investors, whose thoughts have recently been dominated by fears that problems in the US subprime market could result in a global credit crunch, hitting all the major economies.

But strong corporate news including better-than-expected sales figures from the world's biggest retailer, Wal-Mart, sent the Dow soaring by 283.86 points to close at 13,861.73.

In London, fund manager Man Group shone out, up 14p at 630½p, as buyers came in on the back of yesterday's strong trading statement.

Property shares recouped many of yesterday's losses, helped in part by the fact that City landlord Derwent had managed to sell three central London buildings for more than twice what the company thought they were worth six months ago.

Derwent, 21p higher at 1792p, has sold non-core buildings in Greenwich, Knightsbridge and the City for a total of £175m - £91.8m above their recorded value at the beginning of the year.

Derwent boss John Burns said the huge premium reflected the 'strength of the London property market'. He added that the money would be reinvested in new offices and refurbishment schemes in central London.

British Land climbed 18p to 1381p, while Land Securities was 27p better at 1750p. Quintain stood out among the smaller property groups, gaining 37p to 892p as it emerged that HBOS had bought a chunk of stock from Rock Investment amounting to almost 12% of the company. HBOS now has 12.39% of Quintain. Upmarket estate agent Savills also benefited, adding 10p to 571p.

As the excitement surrounding Rio Tinto's bid abated, miners fell back with Antofagasta 2½p lower at 713p. BHP Billiton was off 27p at 1527p while Lonmin slipped 72p to 4278p.

Cadbury Schweppes slid 8p to 655½p as investors lost their nerve ahead of today's expected sentence over the salmonella scandal.

Outsourcing specialist Bunzl today seemed to be doing what its shareholders have long been agitating for - buying a bolt-on business that will expand the company's geographic reach. The acquisition of King Benelux for an undisclosed amount - Panmure Gordon reckons about e100m (£67.8m) - widens its Dutch operations and gives it a foothold in the Belgian market. Panmure says synergies could add one percentage point to the margin, but Bunzel was ½p lighter at 692½p.

Whatman dived 29¼p to 229p despite chief executive Kieran Murphy's insistence that troubles which had beset the forensic-science kits group were over. First-half sales were down by 8%, due in part, said Murphy, to a strong comparison with last year when the French police bought extra kits. He said the order book, down 22% at the start of the year, was now adrift by just 2%.

Renewable Power & Light no longer looks like such a bright idea. Shares in the sustainable energy group crashed 75¾p to 38¾p as trading resumed after suspension last week. The group said it would be taking legal action against Safari of the US and one of its directors after the company was unable to supply palm oil at a previously agreed price. Investors can expect a loss in the current year.

Look out for a possible new bid for mining tiddler Consolidated Mineral, which is poised to accept an offer from Pallinghurst. Consolidated, up 8p at 137p, today said that it may get a bid from Territory Minerals.