Market report: Thursday close

CITY investors were clinging to the 5000-points level by their fingertips today as share prices ran out of steam in the wake of yesterday's impressive late run.

The FTSE 100 index closed 6 points down at 5005 following falls in Far Eastern markets today. One broker commented: 'Yesterday's late run shows how risky it can become for stock market bears.'

The Dow began giving back some of yesterday's gains this afternoon, showing just how fragile sentiment is at present. It was down 17 points at 10533, soon after the London close.

Scottish Power climbed 6½p to 463½p as talk of a bid began doing the rounds. Speculators say E.On may be interested in making an offer. Only last week, the group announced plans to sell its US Pacificorp division for £5bn.

Pleasing figures from precious metals outfit Johnson Matthey were rewarded with a rise of 31p to 1015p. Broker Credit Suisse First Boston repeated its outperform rating on the shares, pointing out that the company's full-year pre-tax profit of £204m was 2% ahead of consensus and in line with its forecast.

Buyers were also coming in for some of the big mining companies. Antofagasta rose 11p to 1186p, BHP Billiton 9p to 683½p and Xstrata 9p to 1008p.

But sugar giant Tate & Lyle gave up some of yesterday's gains with a fall of 19½p to 465½p. The group posted a creditable performance with its full-year numbers, but the company is concerned about EU sugar reform.

Broker Dresdner Kleinwort Wasserstein has repeated its buy recommendation on Sportingbet, down 18½p at 282½p, following thirdquarter numbers.

Packaging specialist Bunzl rose 1½p to 545p - a new three-year high. Broker UBS thinks the group has some puff left in it and is destined for better things. It has repeated its buy recommendation and lifted its 12-month target price from 600p to 630p.

Aim-listed oil explorer First Calgary, up 27½p at 480p, celebrated another commercial find at its ZCHW-1 well south-west of its FCP Sonatrach ZCH-1 discovery. Chief executive Richard Anderson said he was pleased with drilling results.

Hardman Resources firmed 4¼p to 79½p after completing the first phase of drilling at its Chinguetti project off Mauritania. Equator Exploration was 4½p up at 145p. It is part of a consortium that has an allocation in Block 2 of the Nigeria-Sao Tome development. The block runs alongside Block OPL 246, which contains proven oil reserves totalling 800m barrels.

Also on Aim, Pentagon Protection, which makes protective film for glass products such as car windscreens, marked time at 4.38p. Haytham ElZayn, boss of American warranty group Allegiance Holdings, bought 14.3m shares at 3.83p each, or £548,546. He has agreed to collaborate in the introduction and development of Pentagon's products in the US.

Environment specialist Virotec International rose 2¾p to 26¼p. The company has been given the go-ahead by Pennsylvania Department of Transportation to treat waste rock. The contract could be worth up to $18m (£10m).

It was the first day on Aim for FireOne following a placing of 10m shares by broker Numis Securities at 241p, raising £24.1m. The group provides payment processing services for the gaming industry and is capitalised at about £120m. The shares opened at 253½p and quickly raced up to a peak of 284p.