AFTER languishing in negative territory for much of the day a late surge in the FTSE100 propelled the market to a closing value of 5879.8 – a 42.5 point increase.

Feb 1 2008 by Graeme King, The Journal

The biggest climbers on the day were Carphone Warehouse – which climbed 24.5p to 328.75p – and BG Group which saw its share price jump 5.26% – an increase of 55p to 1099p.

Shares in Carphone Warehouse leapt on talk of an imminent takeover bid from US firm Best Buy. This isn’t the first time rumours have surfaced of the possibility of a takeover for Carphone Warehouse and yet again the chain refused to comment on the speculation; Best Buy, however, do have the financial clout to launch the mooted 420p per share price offer.

BG group’s share price leap came purely on the back of increased output at the Karachaganak oilfield – in which BG Group holds a majority stake – and also the possibility of a jump in profits similar to the record levels announced by Royal Dutch Shell this week.

Investors have been keen to buy into oil and gas since the news which has also prompted increases in the share price of Tullow Oil – up 27p at 597.5p, and BP which increased 7.5p to 532.5p.

The biggest loser yesterday was UK insurer Friends Provident which fell 10.57% – a drop of 16.4p to 138.9p – following announcements of reduced dividends from 2008 and the delay in appointing new chairman Trevor Matthews which has raised concerns over the group’s short term direction.

Ian McElroy Investment Manager, Barclays Wealth.