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London stock market reaches record high for the year

LONDON: The London stock market finished the week at the highest point so far this year thanks to a surge in the values of technology firms after two weeks of hesitant trading, and to a consolidation of recent gains by older blue chip firms.

A 2.7 percent rise, to 6,735.8, was recorded in the FT-SE index, passing for the first time this year 6,700 points. Most of the rise took place Friday as shares on the Nasdaq technology index soared once again.

For the rest of the week, shares in firms belonging to the "old economy" were the star performers, while traders appeared unimpressed by the new budget unveiled by Chancellor of the Exchequer Gordon Brown and the inflationary threat posed by four billion pounds extra public spending.

In the high-technology and media sector, the ARM microchip firm rose 1.9 percent to 4,150 pence, while Marconi rose 3.7 percent to 836.5 pence.

Several companies which rose steeply on Friday were, however, unable to recoup their losses from earlier in the week.

The bio-technology firm Celltech ended the week 1.9 percent lower, at 1,282 pence, while Freeserve fell 14 percent to 512.5 pence, and software manufacturers Baltimore 17 percent to 8,985.

Most of the older names on the stock market preserved their recent gains, while several recorded sharp rises in value.

Allied Domecq rose 15.4 percent to 302 pence, Invensys 9.7 percent to 285.5 pence, and Cadbury Schweppes by 2.8 percent to 411.5.

Vodafone Airtouch for its part fell 0.4 percent to 368.25 pence after 925 million of its shares were sold by the Hong Kong Hutchison Wahmpoa conglomerate on Wednesday.

Life insurance company Sun Life enjoyed a rise of 49 percent in the week, finishing at 457 pence, on the heels of news that its French sister group Axa was planning to buy a further 43.7 percent of Sun Life stock.

The Eidos video game firm, on the other hand, fell 44 percent to 375 pence following warnings of low profits. AFP