Footsie hits peak on US recovery hopes

BUY, buy buy! Share prices on both sides of the Atlantic raced ahead on expectations that an impressive thirdquarter reporting season in the US will make the final quarter one to remember.

Motorola, the world's second biggest maker of mobile phones, gave everyone a buzz by reporting third quarter sales and profits that far exceeded analysts' estimates, and arrived a day ahead of schedule.

Though attendance on Wall Street was restricted by the Columbus Day holiday, the Dow jumped more than 100 points at one time, while Nasdaq hit a 19-month peak of 1940. The Footsie closed 51.3 points up at the day's best of 4362.3, its highest for about 14 months.

ETrade Securities strategist Rupert Thompson believes US earnings will exceed expectations on the back of continued strong productivity gains and the recent pick-up in the economy, which should fuel improved top line sales growth.

Keep your fingers crossed that General Motors, IBM, Intel, Johnson & Johnson and Merrill Lynch will light the blue touch paper this week.

Confident that its £960m one-for-one rights issue at 70p will be fully taken up by shareholders when it closes tomorrow, Royal & Sun Alliance rose 4 3/4p to 95p and the new nil-paid 4 1/4p to 24 1/2p.

Prudential gained 21 1/2p to 458 3/4p after Citigroup Smith Barney upgraded from hold to buy and lifted its target price to 510p from 450p.

Amid hopes that the mining sector will lead a strong recovery in cyclical stocks, Rio Tinto advanced 42p to 1466p and Anglo American 38p to 1219p.

Abbey National rose 16 1/2p further to 591p as dealers refused to rule out a possible bid from National Australia Bank, owner of the Yorkshire and Clydesdale banks.

Speculative buying ahead of Thursday's interim figures lifted home shopping group N Brown 7 1/2p to 140 1/2p.

Dealers heard an ancient jackanory that once the figures are out of the way, Iranian tycoon Robert Tchenguiz will buy the controlling 45.7% family interest and then bid for the rest. He promptly denied it. Two years ago, N Brown held abortive merger talks with Littlewoods.

Womenswear retailer New Look improved 7 1/2p to 330p after founder Tom Singh tabled a revised offer to the board of around 345p-350p per share, 15p higher than his previous offer. He hopes to get access to the books soon.

Buying ahead of Tuesday's results helped housebuilder Bellway rise 6 1/2p to 705p. Bid rumours were rife elsewhere with Bovis Homes 12p up at 521 1/2p and Redrow 5p dearer at 349 1/2p on whispers they will soon be climbing into bed together. Berkeley gained 24 1/2p to 859p, Persimmon 12p to 567p.

Racecourse owner Arena Leisure galloped 2p ahead to 47 1/2p after finalising a contract with the Bookmakers' Afternoon Greyhound Services to supply racing pictures into UK betting shops for five years from January 2005.

Aim-listed DDD Group, which develops 3D technology, advanced 2 1/4p to 34p. Arbuthnot advised clients to buy after its agreement to resell Sharp's Actius RD3D notebook computer.

Clean Diesel Technologies soared 77 1/2p to 197 1/2p in a thin market, The US Environmental Protection Agency verified that its platinum plus purifier system is much more effective than traditional catalysts.

Proactive Sports, the sports agency that represents England's young superstar Wayne Rooney, edged up 1/8p >to 6 1/8p. It has acquired Kingsbridge Asset Management, which sells financial services to sports stars including cricketers Marcus Trescothick and Michael Vaughan.

Dealings in Health Media were resumed at 2 3/8p, up 1 3/4p, after the £42.5m reverse takeover of intellectual property specialist Bybrook.

Eckoh Technologies improved 1/2p to 14 1/4p following director Nik Philpot's purchase of 100,000 shares at 14p.