THE London market jumped 5% today as blue-chip stocks
bounced back from Friday's losses on hopes of further Government aid to ailing global economies.
Such funds tend to :include lots of blue-chip stocks
from well-established companies that outpace the rest of the market.
shrugged off the Government's spending review yesterday as big gains in the mining sector helped the top tier move higher.
Only six blue-chip stocks
were in positive territory, one of which was Cable & Wireless after it announced plans to focus its Bulldog division on wholesale services for major broadband providers.
The blue-chip stock
slid 21p to 249p after issuing third-quarter results which showed profits ahead of hopes but royalty payments - generated each time a product containing an ARMdesigned chip is sold - were below forecasts as the economic slowdown hit.
Another blue-chip stock
, the national utility company Tenaga Nasional Bhd also saw some heavy selling after it was said to have difficulty fulfilling its power purchase agreement with independent power producers.
After the first hour, the FTSE 100 Index was off 141.4 points at 4415.5 with every blue-chip stock
in the red.
A FIGHTBACK by blue-chip stock
hit by three days of dramatic losses earlier this week petered out yesterday afternoon.
Housebuilders were also off recent lows, with Persimmon setting the pace during its final session as a blue-chip stock
. Shares rose 22.5p to 387.5p, a gain of 6%, while FTSE 250 counterpart Barratt Developments jumped 18% or 13.5p to 91.75p and Taylor Wimpey gained 6.5p to 73p.
The increased shareholding of the pair's investment vehicle, Ellerman, ensured the blue-chip stock
continued to hover near record highs, up 18p at 1234p.
British Airways was the blue-chip stock
worst-hit by the latest spike in oil prices, however, as concerns over its fuel bill mounted.
Just six stocks were in negative territory, headed by Northern Rock as the beleaguered bank's last session as a blue-chip stock
began with a drop of 5p to 87p.
AROUND pounds 1.2bn was wiped from BAE Systems shares yesterday after the launch of an investigation into the company's dealings in Saudi Arabia caused the blue-chip stock
to close 34.5p lower at 407.5p - a drop of 8%, although this peaked at 11% earlier in the session.
THE demise of telecoms group Marconi as a leading blue-chip stock
was sealed last night after a major shake-up of the FTSE 100 Index was confirmed.
Shares in the blue-chip stock
were languishing at a year low of 332p in June, but were up by 90% to a high of 632p earlier this month as investors cheered further signs that the fallen giant had won back customers and improved sales.