Market report: Monday close

HOUSEBUILDERS were back on the shopping list of City investors today following news of further industry consolidation.

This time Taylor Woodrow, up 24 1/4p at 252 1/4p, is launching an agreed £480m bid for Wilson Connolly, 23 1/2p better at 232p. The terms value Wilson at 230p a share.

There has been a plethora of takeovers and mergers in the sector in recent years as companies try to make cost savings and the most of their precious land banks.

News of the deal spilled over into other housebuilders with Bovis Homes adding 13p to 476p, Barratt Developments 15 1/2p to 534 1/2p, Westbury 22p to 452p, Persimmon 20p to 592p, Redrow 5 1/2p to 349 1/2p, Bellway 12p to 670p and Wilson Bowden 27 1/2p to 1097 1/2p.

The FTSE 100 index climbed back above 4200, despite Wall Street being closed today for the Labor Day celebrations, rising 43.3 points to 4204.4.

News of strong underlying trading lifted Allied Domecq 12 3/4p to 393p. The group said earnings were in line with expectations. Rival drinks group Diageo fell 2p to 676p ahead of results on Thursday.

Drugs giant AstraZeneca jumped 72p to 2502p after telling the European Society of Cardiology annual meeting in Vienna at the weekend that its heart treatment, Exanta, could prevent 50,000 deaths in this country each year. Exanta is currently in Phase 2 dosage trials.

Legal & General rose 3 3/4p to 103 1/4p as more than 109m shares changed hands. This included a riskless trade in 45m shares at 101 1/4p which formed part of a fund-to-fund transfer.

There was also heavy turnover of 68m shares recorded in Invensys, up 3p at 35 1/4p, including a line of 7.5m shares at manufacturer Unilever rose 4 1/2p to 519p after US securities house Lehman Brothers put it on its European Recommended List.

Demand for gold and other precious metals is good news for the likes of Johnson Matthey, up 36 1/2p at 1018p, Anglo American, 25 1/2p to 1208p, and Rio Tinto, 5p to 1396p.

Insurer Royal & SunAlliance rallied from an opening fall to trade 5 1/2p better at 144 1/4p. Brokers are braced for a two-for-three rights issue at 100p, raising up to £900m, accompanying Thursday's interims and strategic review. A previous attempt last year failed due to the falling stock market.

Stockbroker Collins Stewart Tullett rallied 31p to 410p after moving to sue the Financial Times. The shares fell sharply last week after it emerged ex-employee James Middleweek was suing the company and alleging Collins Stewart was involved in insider trading and puffing up the price of companies it brought to market.

Picture booths operator Photo-Me was static at 116p, despite denying weekend reports that chief executive Serge Crasnianski was poised to dispose of a large parcel of shares. He holds 69.1m shares, or 19.1% of the company. But non-executive chairman Dan David may sell some of his holding of 65.7m shares.

Anglo-Dutch steelmaker Corus rose 2 3/4p to 33p, boosted by the decision of broker UBS to repeat its buy recommendation and raise its 12-month target price from 31p to 38p.

BTG jumped 60 1/2p to 372p as broker Credit Suisse First Boston initiated coverage with an outperform rating and 700p target price.

Prices and indices in this section are supplied from various sources and calculated at different times and may not always match those listed on the site.