Market report: Friday close

IT WAS a happy, birthday for the blue-chip FTSE 100 index today. It marked its 20th anniversary by passing the next milestone in its recent recovery - a close above 4500.

It was up 33.3 points firmer at 4,510.2 after US markets made a bright return to trading, as it notched up a 10th consecutive day of gains.

The strong showing came despite a devastating profits warning from High Street old hand WH Smith which did little to calm the nerves of analysts waiting for a slew of retailer updates next week.

The Footsie began life at a base of 1000 in 1984 - when privatisation was the theme of the day. Just 23 of the original 100 remain, led by oil giant BP, still the City's biggest stock and picked by many Christmas share columns for further growth in 2004 as Opec keeps a tight squeeze on world oil supplies.

The group, which took its place on the FTSE 100 alongside former oil stocks Britoil and Ultramar in 1984, moved 1 3/4p higher to 454 3/4p today as punters adjusted their portfolios for the coming year.

WH Smith's warning that profits would be 'materially below' expectations was the highlight of a quiet day as the vast majority of City traders decided to nurse their New Year hangovers and take a long weekend.

WH Smith topped the FTSE 250 fallers' board, plunging 30 1/2 to 245p, and knocked several rivals with Woolworths down 1/4p to 44p and HMV off 2p to 165p.

Dixons also felt a chill from the gloomy sentiment, falling 1/2p to 138 1/2p. Next, which reports Christmas sales on Tuesday, rose 23p to 1146p.

Another Christmas share tip favourite, mmO2, headed the Footsie risers as it built on its 75% jump during 2003 - making it one of the star performers among bluechips-last year. It rose 2 1/2p to 79 1/2p.

Analysts believe the former BT business is on course to hit 100p in coming months with 3G mobile handsets around the corner and further signs of an upturn in its German unit.

Rival Vodafone rose 1 1/4p to 139 3/4p despite confirmation that Spanish construction group Acciona had sold 285m shares, or 0.4%, for e727m (£509m). Acciona received them as a part-payment for selling the mobile phone group a stake in Spanish rival Airtel.

Elsewhere, hijacking fears following yesterday's cancellation of an afternoon flight from Heathrow to Washington seemed to be holding back another of 2003's high-flyers, British Airways. It slumped as low as 86p ahead of the Iraq war last spring and, although the airline hopes to resume normal service to America's capital today, the shares eased 3p to 229 1/2p.

Outside the top flight, shares in gaming and greyhound group Wembley were once again under pressure amid speculation that potential bid talks may be affected by another setback in the US.

State regulators have only approved four months of dog racing at Wembley's moneyspinner, the Lincoln Park track on Rhode Island, granting it just 112 race meetings instead of 340. Wembley shares drifted 2 1/2p to 600p.