London pre-open: Surge to continue

With Wall Street finishing higher yesterday traders in London see no reason for the party to end this side of the Atlantic, and blue-chip shares are forecast to open mostly firmer. The FTSE 100 index is expected to open around 46 points higher.A strong performance from B&Q helped DIY retailer Kingfisher post a sharp rise in pre-tax profits in the half year to August 1. Pre-tax profits for the period came in at £201m, compared with £146m over the same period the previous year as revenues climbed 7.3% to £5.5bn from £5.1bn. Revenues were up by 1.4% excluding the impact of currency movements. Engineer and construction contractor Balfour Beatty said it is in advanced discussions regarding a ‘significant acquisition’ which would be substantially funded by a rights issue. The group said a potential deal would materially accelerate the fulfilment of its existing strategy.Tullow Oil announced the discovery of a significant oil field at Ngassa which has the potential to be the largest in the basin to date. The Ngassa-2 exploration well in Uganda has encountered 7 metres of oil pay in a 14 metre gross sand. Pressure data acquired through logging operations indicates the potential for a significant oil column down-dip, which could fill the entire 150 square kilometre closure.Engineer and construction contractor Balfour Beatty said it is in advanced discussions regarding a ‘significant acquisition’ which would be substantially funded by a rights issue. The group said a potential deal would materially accelerate the fulfilment of its existing strategy.Emerald Energy, the oil explorer soon to be taken over by Chinese state-run oil company Sinochem Resources, said it continues to be pleased with the results achieved from its Colombian asset portfolio, 'with oil produced from a second horizon in the Mirto No.1 exploration well, the identification and commencement of an opportunity to enhance the production capability of the recently discovered Caballos oil reservoir in the Gigante No.2 well, and steady production from the producing fields.'