Market report: Monday close

COMPUTER software specialist

The software is designed for use in more than 400 hospital laboratories there. Misys tried to limit the damage by pointing out it had supplied a 'patch' and 'work around' solution to customers.

It said the problem would not have a material financial impact on profits, a point borne out by US securities house Lehman Brothers. It calculates that lab software accounts for less than 1.5% of revenues and points out that no one has incurred health problems.

'We just do not think this is that big a deal,î said a spokesman for Lehman, which has upgraded it to overweight and raised price to 350p. It continues to pin its hopes on the group's involvement in banking software, expected to produce strong growth towards the year-end.

US investment bank JP Morgan has raised its recommendation from neutral to overweight, with a 355p target, while Morgan Stanley has upped its stance to overweight.

Shares generally hit their best levels for 14 months, supported by a big rise for the Dow in New York this afternoon amid growing hopes about third-quarter corporate earnings. The FTSE 100 index ended up 51.3 points at 4362.30.

More than 110m Royal & SunAlliance shares changed hands, the price firming 4 3/4p to 95p - with the nil-paid up 3 1/4p at 23 1/2p. The shares go fully paid tomorrow.

Anglo-Swedish drugs giant AstraZeneca retreated 3p to 2692p. The group has received European approval for Seroquel, used to treat manic depression. Worldwide sales of Seroquel last year grew 67% to $1.14bn (£685m).

Miners continued to be chased higher as Smith Barney joined the growing number of brokers to push the sector. It has raised its recommendation on BHP Billiton, up 23p at 475p, from hold to buy, and its target from 475p to 500p. It repeated its buy on Rio Tinto, up 42p at 1466p, while lifting its target from 1600p to 1650p.

Jarvis lost 9 1/2p to 314p after Government officials claimed the civil engineering services provider has lost new contracts worth tens of millions of pounds because of the mauling its reputation took from the fatal rail crash at Potters Bar and derailment at King's Cross.

Buses and trains operator Stagecoach fell 1p to 79 3/4p despite credit rating agency Moody's upgrading it and saying the company's outlook was now stable.

Fashion retailer New Look was marked 7 1/2p higher to 330p as it looked destined to be taken private again. The group's founder and biggest shareholder, Tom Singh, is reckoned to be poised to raise his indicative offer from 330p to 345p, which values the company at almost £700m, an increase of £30m on his previous offer.

Bid target Amersham dipped 11 1/2p to 748 1/2p in the wake of last week's agreed allshare offer worth 800p from General Electric of the US. Broker UBS has repeated its neutral stance but raised its 12-month target from 675p to 800p, while Deutsche Bank has moved from buy to sell.