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Lloyds Bank, United Kingdom - Source: Reuters -
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Britain's FTSE 100 share index was up 0.4% in early trade on
Friday, following gains made overnight in the US and Asia and led
by banks after Lloyds Banking Group said it would return to
profitability in 2010.
By 0900 GMT the FTSE 100 index was up 19.70 points at 5,662.32,
having closed almost unchanged in the previous session after
hitting a 21-month closing peak on Wednesday.
The 'quadruple witching' expiries of futures and options contracts
are expected to cause some volatility mid-morning.
Banks were the biggest risers having slipped on Thursday, with
Barclays, Royal Bank of Scotland and Lloyds Banking Group up
1.5 to 7.6%.
Bailed out British lender Lloyds said it would return to
profitability in 2010 after two years of heavy losses, helped by
lower than expected bad debts and tight cost controls.
"The corporate news front has been incredibly quiet this week. The
unexpected update from Lloyds has been a welcome relief and
kick-started interest in the banking sector," said Richard Hunter,
head of UK equities at Hargreaves Lansdown.
Oils, miners rise
Energy shares were high up on investors' wanted lists. BP and
Royal Dutch Shell rose 0.3 and 0.6% respectively.
Australia's Arrow Energy asked for trading in its shares to be
suspended, stoking speculation that Royal Dutch Shell and
PetroChina would sweeten their joint $3 billion offer for the
coal-seam gas producer.
Oil explorer Tullow Oil was up 0.4%, helped by a target price hike
from RBS.
Miners rebounded from Thursday's falls, underpinned by firmer metal
prices. Fresnillo, Kazakhmys, Xstrata and BHP Billiton rose 0.6 to
1.4%.
Drugmakers extended the previous session's gains. AstraZeneca
climbed 0.9%, while GlaxoSmithKline was 0.4% higher.
Life Insurers were also firmer with Aviva gaining 0.6% after Aviva
Investors, its asset management arm, said it plans to expand in
Asia-Pacific by hiring bond and equity fund managers in Singapore
and setting up a sales offices in Japan.
Resolution rose 0.7%. Deutsche Bank kept its "hold" rating and cut
its target price on the firm but said results next week cast a
spotlight on an "unreasonably cheap valuation".
Peers Legal & General and Prudential added 1.0 and 1.5%,
respectively.
Among individual movers, British Airways put on 1% on hopes that
Unite union's last-ditch talks with BA's management will lead to a
strike by cabin crew this weekend being averted.
Among the second lineers Booker Group, Britain's largest
cash-and-carry wholesaler, was the top riser, up 5.9% after
Evolution Securities raised its rating to "buy" from "add".
Some defensives were on the back foot as investor appetite for risk
returned. Utilities Centrica and Severn Trent both fell 0.3%, while
British American Tobacco was down 0.5%.
No significant economic data is scheduled for release on Friday,
either in the UK or the United States.
