Market report: Monday close

SMALL gains in thin dealing were the order of the day as City investors struggled back to work after the festive break.

Three large lines of blue-chip stock went through on the ticker to help liven up proceedings. They included 11.6m shares in National Grid Transco as a late trade at 398 3/4p, leaving the price 2p down at 397 1/2p, a line of 8.55m shares in Marks & Spencer at 288 1/2p, the price firming 3 3/4p to 289 3/4p, and 6.25m in Scottish Power, at 372 1/2p, with the price up 3/4p at 371p.

But trading desks dotted around the Square Mile had only skeleton staffs to keep things ticking over with many investors staying at home to prepare for New Year celebrations.

The FTSE 100 index posted a rise of 12.8 points to 4457.5, with less than 600m shares traded by mid-afternoon. Dealers in London were pinning their hopes on opening gains for the Dow in New York this afternoon.

Wm Morrison, currently bidding for rival Safeway, dipped 1/2p to 224 3/4p although brokers are looking forward to cost savings expected from the deal.

Premier League leader Manchester United rose 6 3/4p to 262 3/4p on reports that Russian millionaire Ralif Safin has begun stalking the shares as a prelude to a full bid for the football club. Safin, one of the founders of Russia's biggest oil company, Lukoil, is said to have had talks with London merchant bankers about assembling an offer.

Talk of a Russian bid for Man U has been fuelled by Roman Abramovich's takeover of London rival Chelsea earlier this year. Brokers say Safin will have to make a generous offer to win over stakeholders such as Malcolm Glazer, owner of the Tampa Bay Buccaneers football team, who has almost 15% of the shares.

Alternative Investment Market-listed Hardman Resources fell 1p to 39 1/2p despite news that it had plugged a gas well at its Pelican 1 drilling site, north of the Chinguetti oil and gas field in Mauritania.

Managing director Ted Ellyard said: 'It is very early in the evaluation and in our understanding of the well results. The fact the well was located near the crest of a very large structure provides some hope that oil may yet be found on the flanks of the prospect or in deeper, as-yet-undrilled formations within the structure.'

Financial services outfit Lupus Capital rose 1.13p to 9.13p. Word is that Greg Hutchings, ousted as chief executive of Tomkins nearly three years ago, is preparing to make a comeback on the stock market with an injection of capital. Lupus Capital is currently valued at £15.5m.

Pubs and hotels operator Whitbread eased 4p to 715 1/2p. New chief executive Alan Parker is said to be giving some thought to releasing £200m of capital tied up in its Marriott Hotels chain to boost returns.

There was little festive cheer at Gympie Gold, whose shares dipped 2 1/2p to 19 1/2p before being suspended. That follows a fire at its Southland Colliery on Christmas Day.

Murray Financial, originally set up to buy a building society, has moved into the pubs game. It has paid £1,000 to Resurge for Chartcity, operating seven pubs in London and the South of England under the name Front Room.

Chartcity was set up in October to buy the business, which was in receivership, for £1.5 million. All the leases were in the name of Chartcity. Murray Financial rose 1/4p to 2 1/2p.