THE scent of more takeover bids and a general feeling of relief that Thursday's initial 70 point slide in the Dow Jones Industrial Average proved only temporary enabled London's equity market to regain its poise yesterday.
It closed a net 22.6 up at 3,766.8 and, in the process, recouped losses made earlier in the week when markets were struggling to resist a series of big falls on Wall Street.
Over a week during which Wall Street fell over 200 points in three trading sessions, the Footsie showed an impressive 11.2 gain.
The FTSE Mid 250 index continued its strong performance, moving up 17.5 to 4,408.0, yet another all time high. Over the past four sessions, the Mid has risen 22.7 points.
The Conservative Party's latest by election humbling, in South East Staffordshire, came as no shock at all to traders, who had already factored in the worst possible outcome of the election.
On a more fundamental basis, the market was again driven higher by a persistent flow of new money coming in.
A report that bids for two of the regional electricity stocks by the generators, PowerGen and National Power, would be given the go ahead by the Department of Trade and Industry provided impetus for the market.
There were big gains across the regional electricity stocks, where the market is now bracing itself for more takeover bids which dealers expect sooner rather than later.
