London open: Footsie opens strongly

11th Sep 2009 08:44

London's blue chips opened comfortably higher with buyers encouraged by indices in the US hitting new highs for the year.Miners remain the driving force behind the London market's recent surge. It is second-liners Fresnillo and Antofagasta that are the best performers today on hopes that economic recovery will underpin the recent rise in metal prices.British Airways is another recovery play, but it is seemingly already pricing in a return to the boom days. The shares are up again today making a near 20% rise this week. In early July the shares were changing hands at under 120p.Tesco had a more tangible reason for its shares to pick up. The supermarket giant said it will create more than 1,500 new jobs with the creation of a new partnership with Belgian company Fortis providing motor and household insurance. Initial investments from Tesco and Fortis are expected to be in the region of £100m each.Pub group JD Wetherspoon is mulling a complete refinancing, possibly including a rights issue to clear its debts after it posted record underlying figures last year. Profits before tax before exceptional items in the year to July rose 13.6% to £66.2m (2008: £58.2m), at the high end of forecasts. Recruitment firm SThree is still finding the going tough and said it is too early to call a turning point in the market despite signs of stabilisation in the UK. Demand for permanent placements remains especially weak, but the contract hiring market is proving more resilient, the company said in a trading update covering the three months to the end of August.Online gamer 888, in contrast, is very strong. Dragonfish, 888's independent B2B division, has signed a long-term agreement with Harrah's Interactive Entertainment to provide its online gaming services. Balfour Beatty said Gammon Construction, the Hong Kong-based infrastructure contractor in which it has a 50% shareholding, has been awarded the Centennial Campus contract by the University of Hong Kong, valued at HK$2bn (£150m). The contract is scheduled to commence this month and is expected to have occupational permit issued in December 2011 with overall completion in Spring 2012. Home shopping specialist N Brown has acquired certain assets of High and Mighty from the administrator. The company has bought the brand, web site and the assets of 14 High and Mighty stores in the UK for £1.6m in cash.