Reply #31: FTSE firms after Bank rate decision [View All]

[Ghost Dog]

http://mwprices.ft.com/custom/ft2-com/html-story.asp?pulse=true&siteid=ft&dist=ft&guid=%7B3b09746c%2D11de%2D4925%2D9ec3%2D0966bee4529b%7D

After tumbling on Wednesday, London blue-chips rallied modestly at midday on Thursday after the Bank of England announced it decision to hold interest rate at 5.5 per cent. Vodafone led the morning gainers, adding 2.6 per cent to 157.7p after activist investor ECS Assets pressured the telecoms giant to return as much as £38 billion to its shareholders. John Mayo, former deputy chairman of Marconi, is backing ECS’ proposal. Intercontinental Hotels Group rose 1.4 per cent to £13.37 after the Barclay brothers, the hotelier’s largest shareholders, increased their stake in the company to 10 per cent. Talk of the brothers bidding for IHG - which also runs Crowne Plaza and Holiday Inn hotels - has circulated since January, when they announced they had a 5 per cent stake in the company. BAE Systems, Europe’s largest defense company, was trading down 1.7 per cent at 431p after media reports that it paid £1 billion over ten years to the Saudi royal family in connection with Britain’s biggest arms sale. The FTSE 100 gained 17 points, or 0.26 per cent, at 6,539.7 after closing 110 points weaker on Wednesday at 6,522.7, its biggest one day fall since March.