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FTSE remains firm midafternoon

MIDAFTERNOON REPORT: Headline shares remained firm midafternoon, the gains fuelled by strength among oil issues on the back of firm crude prices, with British Energy among the top blue-chip risers after confirming bid approaches.

At 3:00pm, the FTSE100 was 75.7 points higher at 6,327.5 with the FTSE250 ahead 131.5 points at 10,470.4 and the FTSE Smallcaps 5.3 points weaker at 3,217.9.

NEW YORK

Wall Street were a little changed in early trading as investors digest new record highs for oil and a surprising jump in new home construction.

The Dow Jones Industrial Average was down 22.6 points at 12,970.1 in early deals, with the Nasdaq Composite down 9.74 at 2,523.99 and the S&P500 adding 0.58 at 1,424.15.

LONDON MARKETS - BLUE CHIPS

M&A talk helped British Energy to add 36.5p at 716.5p, as the group said it has received at least two offers for the company, with sources close to the deal saying these include offers from EdF and Iberdrola SA.

British Airways, shrugged off higher crude prices and climbed 8.5p to 232.5p, after restoring its dividend and posting strong full year numbers, while Deutsche Bank reiterated its 'buy' rating in reaction.

Firmer crude prices helped crude majors, after oil moved above $126 a barrel Friday due to weakness in the US dollar and tight global distillate markets.

Shell took on 50p to 2,109p and Tullow Oil gained 22.5p to 947p.

Still in commodities, firmer metals prices underpinned mining sector gains, with Anglo American up 102p at 3,585p, Lonmin 92p higher at 3,449p and Rio Tinto rising 30p to 7,053p.

Bid talk boosted interdealer broker ICAP, which added 29.5p to 664.5p, as vague rumours circulated that Intercontinental Exchange, owner of London's crude oil exchange, is interested in making a bid.

Compass Group added 12p to 368.25p as Goldman Sachs lifted its stance to 'neutral' from 'sell', following first-half results from the contract caterer on Wednesday.

Among a handful of fallers, supermarket group Sainsbury shed 2.75p to 374.75p, extending losses after Wednesday's disappointing full-year figures.

Talk it is to make acquisitions, mainly in China and Japan, hindered Reckitt Benckiser, as shares lost 19p at 2,967p.

MIDCAP NEWS

A well received trading statement from Capital & Regional sent shares up 19p at 354p. The company said its proposal to raise new equity has progressed well.

Petrofac took on 23.5p to 652p, after the group said it expects net profit for 2008 to be at the top end of market expectations, prompting Seymour Pierce to keep its 'outperform' stance on the stock.

Charter rose 47p to 1,054p, after announcing improved full year hopes in its statement today, largely because of the positive impact of currency translation effects.

On the downside, a broker downgrade left shares in Logica 2.75p lower at 124.75p, with Goldman Sachs lowering its recommendation for the group to 'sell' from 'neutral'.

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