Market report: Friday close

IT MAY pay lip service to New Labour, but the stock market loves the Tories. John Major's surprise win for the Conservatives in 1992 was greeted euphorically in the City, the FTSE 100 soaring 136.2 points - at that time, the second-biggest one-day rise ever.

In contrast, the 1997 and 2001 Labour victories saw precious little celebration, with post-polling days budging the blue-chips by no more than a few points.

Today the Footsie hovered a few points up for most of the time and it took better-than-expected economic news from the US this afternoon to galvanise the lacklustre session. The index of leading UK shares closed 16.6 points higher at 4918.9, while the Dow Jones was last up 27.94 points at 10,368.32.

Some companies have benefited from Labour policies and will continue to do so in a third term. Housebuilders and commercial developers have boomed under Labour rule despite grumbles about planning permission and red tape.

Land Securities, for example, has seen its shares almost double from a low of 680p in 2000. The property giant was up 3p at 1345p today as it revealed a £517m debt-inclusive deal to buy retail property group Tops Estates, up 66½p at 509p.

The acquisition gives it seven new secondary shopping centres in areas earmarkedfor new-home expansion, an astute move making it one of the biggest players in the market .

Reassuring first-quarter sales from Unilever shored up support for the blue-chips. The consumer products giant jumped 13½p to 529p on the back of an 8% rise in firstquarter operating profits. Investors were said to be switching into Unilever from rival consumer goods group Reckitt Benckiser, down 25p at 1667p.