The latest Investing Matters Podcast episode with London Stock Exchange Group's Chris Mayo has just been released. Listen here

Less Ads, More Data, More Tools Register for FREE

Intertek outperforms as UK's FTSE rises to near 3-week high

Wed, 29th Oct 2014 17:07

* FTSE 100 closes up 0.8 pct at 6,453.87 points

* Expectations of dovish Fed support global equities

* Intertek buoyed by positive broker comments

* Capita slumps after missing out on contract

By Sudip Kar-Gupta

LONDON, Oct 29 (Reuters) - Britain's top equity index roseto its highest level in nearly three weeks on Wednesday asexpectations the U.S. Federal Reserve will signal it is in norush to raise interest rates buoyed stock markets.

Intertek was the top performer on the blue-chipFTSE 100 index following positive broker comments, withthe FTSE itself closing up by 0.8 percent at 6,453.87 points.

Shares in the company, which carries out tests andinspections to make sure that goods meet health and safetystandards, climbed 5.1 percent.

Traders attributed Intertek's rise to a decision byCitigroup to reiterate a "buy" rating on the stock, while JPMorgan also kept an "overweight" rating on the company aftergetting positive feedback from a meeting with its management.

"Intertek's meeting with JP Morgan last night left themimpressed," said Securequity sales trader Jawaid Afsar.

Supermarket retailer Tesco also rose 2.1 percent.Traders shrugged off news that Britain's Serious Fraud Officewas launching a probe into accounting errors at Tesco and boughtup the beaten-down shares, which have fallen nearly 50 percentsince the start of 2014.

"There is so much negative news already out there on Tesco,that an announcement such as the one by the Serious Fraud Officewill not be enough to prevent bargain hunters from coming in forthe stock," Beaufort Securities sales trader Basil Petridessaid.

However, business services company Capita slumped6.5 percent after it lost out to rivals, including Interserve, in a bid to help run the bulk of Britain'srehabilitation centres for low and medium-risk offenders.

EXPECTATIONS OF DOVISH FED

The U.S. central bank is expected to announce after a policymeeting that it is ending its bond purchases amid signs ofstrength in the U.S. economy, but it is also likely to reinforceits willingness to wait before raising interest rates after avolatile month in financial markets.

The FTSE 100 hit a peak of 6,904.86 points at the start ofSeptember, its highest since early 2000, but it then slumped to15-month lows in October as weak European economic data knockedback stock markets.

"We're seeing evidence that people are anticipating a moredovish Fed in response to the slowdown in the euro zone and thedisinflation that has been gripping many of the majoreconomies," said Alpari UK market analyst Craig Erlam. (Additional reporting by Alistair Smout and Tricia Wright;Editing by Susan Fenton and Emelia Sithole-Matarise)

Related Shares

More News
21 May 2024 11:44

Capita adjusted revenue declines in line with expectations

(Alliance News) - Capita PLC on Tuesday said it was committed to improving its financial performance and reducing costs, as adjusted revenue fell as e...

21 May 2024 10:41

SMALL-CAP WINNERS & LOSERS: Avon Protection ups outlook; Capita falls

(Alliance News) - The following stocks are the leading risers and fallers among London Main Market small-caps on Tuesday.

21 May 2024 08:02

Capita YTD adjusted revenues fall

(Sharecast News) - Professional services company Capita said on Tuesday that adjusted revenues had fallen in the four months ended 31 April as a resul...

14 May 2024 16:19

UK shareholder meetings calendar - next 7 days

7 May 2024 09:51

LONDON BROKER RATINGS: AstraZeneca target raised; Antofagasta lowered

(Alliance News) - The following London-listed shares received analyst recommendations Tuesday morning and Friday:

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.