Market report: Monday close

THE Australian boss of

On Thursday, when he meets institutional investors and brokers, he is expected to outline the progress of the group's recovery programme. The Press has been invited too, which suggests Eddington has a good tale to tell.

Broker Dresdner Kleinwort Wasserstein (DKW) added to the build-up by repeating its buy recommendation while lifting its 12-month target from 340p to 380p.

The focus is likely to be on BA's North American route which has been showing signs of recovery. At the weekend, rival United Airlines reported a 10% increase in numbers carried across the Atlantic, although this compares with a weak February last year, just before war with Iraq.

There is also speculation that BA may be winning back lost ground from discount rival Ryanair, which rose 2 cents to e4.79.

Share prices generally moved in a narrow range in light trading. The FTSE 100 index rose 6.70 to 4553.80, supported by an opening rise for the Dow in New York this afternoon.

Chilean copper miner Antofagasta celebrated its move to London's benchmark-index for the first time in its 116-year history with a rise of 2p to 1172p.

Antofagasta, or Fags as it is known in the City, was brought into the FTSE 100 to replace supermarkets chain Safeway now its takeover by Wm Morrison is complete. The miner's shares have more than doubled in price during the past year and it now boasts a price tag of £2.3bn.

This reshuffle of the Footsie comes only a couple of days before the regular quarterly review, which could see the likes of GKN, up 2 1/2p at 257 1/2p, (capitalised at £1.8bn) replaced by Enterprise Inns, down 6 1/2p at 641p and now valued at £2.2bn ahead of the expected take-up of the option to buy rival pubs chain Uniq.

Computer group LogicaCMG, 3p up at 280p, is also regarded as a possible candidate for promotion. Broker Merrill Lynch has raised the shares from neutral to buy with a target of 350p.

Meanwhile, DKW has cut Wm Morrison, unchanged on 249p, from buy to hold and targeted 250p. Dresdner says it can expect rival supermarkets to step up competition if it successfully integrates Safeway.

Online travel agent lastminute.com fell 3 1/2p to 231 1/2p after joint founder and non-executive director Martha Lane Fox sold two million shares at 230p (£4.6m). It leaves her with 8.2m shares, or almost 3%.

MmO2 rose 3/4p to 112p as 110m shares changed hands on talk that bid talks with Dutch rival KPN were on again.

Computacenter rose 15p to 443 1/2p as broker UBS raised it from neutral to buy while repeating its 530p target.

PlaneStation, which used to trade as Wiggins and which owns Manston Airport in Kent, rose 0.6p to 5.475p in heavy turnover of 31m shares. It follows Friday's exclusive report in the Evening Standard that Manston is being developed. The board held an emergency meeting today.

UBS has also begun coverage of computer software specialist Eidos, 14 1/2p better at 151p, with a buy rating and a 180p target.

On AIM, Matisse returned from suspension 3 1/4p lower at 7 1/4p, closing at 7 1/2p, following a breakdown in bid talks.