Shares soared in London on Monday to their third-highest closing level, 6592, but fell back on Tuesday amid profit taking – despite official figures showing a rise in industrial output during May.
By midday on Tuesday the index of leading shares was down 26.3 points at 6565.7. But the FTSE 250 index pushed ahead and was up 8.4 points at 5993.4, helped by a raft of profit upgrades.
Leading the risers was Glynwed, whose shares continued to surge after it announced two acquisitions in the US and said it still had £100m for more deals. It climbed 4.5p to 249p, compared with Friday’s level of just 217p.
Elsewhere in the sector, Weir jumped 10.5p to 272.5p after announcing the £195m acquisition of Australian pumps business Warman.
A positive note from broker ABN Amro helped Vickers’ shares, which rose 6p to 167p. The broker said Vickers’ acquisition of marine equipment business Ulstein should pay off as oil firms expand development of deepwater fields. This contrasts with City criticism of Vickers when it acquired the Norwegian company.
Charter was less fortunate, with analysts reducing profit forecasts after a meeting with the company. Charter shares fell 18p to 336p, with Investec Henderson cutting its 1999 pre-tax estimate back to £70m from £80m.
Rolls-Royce continued its strong run, rising 12.5p to 278p on the back of support from Dresdner Kleinwort Benson.
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