Rolls-Royce leads strong London trading

Trade on the London market was strong on Tuesday after a bank holiday and in a climate of less uncertainty about the upcoming general election.

On a volume of 2.9 billions shares, both the FTSE 100 and FTSE 250 were up. Life assurer Friends Provident led the FTSE 100 with a gain of 4 percent to 167p on a report of first quarter sales far ahead of expectations. On the FTSE 250, CSR led the way with a gain of 10.5 percent, up to 333p on a positive trading update.

Overall, the FTSE 100 was up 1.2 percent to 4,861.2 and the FTSE 250 advanced by 0.9 percent to 6,786.9.

Rolls-Royce was up 3.2 percent to 244 ½p after Credit Suisse First Boston raised its recommendation for the company to “outperform” on the expectation that the company would win more of the market share in commercial aircraft engines.

In the pharmaceuticals sector, GlaxoSmithKline was up 2.1 percent to £13.40 on news that it has agreed to purchase Corixa Corporation, a Seattle-based company which makes immunity-regulating drugs.

On the down side, media stocks fell due to fears of a slowing in consumer spending. ITV fell 1.7 percent to 119p. BSkyB retreated 1.3 percent to 533p, and Yell Group fell by 1.4.

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