Market report: Wednesday close

SHARE prices were building up a full head of steam as Chancellor Gordon Brown delivered his Pre-Budget Report this afternoon, the FTSE 100 index ending ahead 73.2 at 4144.2

But stock market gains had more to do with an opening rise of more than 200 points for the Dow on Wall Street than any outpourings from our prudent Chancellor. The Americans were cheering better-than-expected consumer sentiment numbers from the University of Michigan, which helped reverse Tuesday's falls. Brown's reduction in UK growth forecasts had, to a certain extent, already been factored in by share prices.

BP jumped 17p to 417p and Shell put on 12 1/2p at 413 1/2p on the Chancellor's proposal to abolish royalty taxes on North Sea oil and gas from 1 January. Rank firmed 1/2p to 286 1/4p on the abolition of bingo duty. Waste Recycling fell 8 1/2p to 172 1/2p and Shanks lost 5p to 86 1/2p with the Chancellor raising the tax on landfill sites from its current £13 a ton to £16.

Troubled Shire Pharmaceuticals drew flak again. It was the biggest casualty among the top 100 companies, the shares falling 66p, or 13%, to 444p.

Dealers reported selling of the shares overnight in the US after it emerged that rival Eli Lilly had been given the go-ahead to market Strattera, a treatment for hyperactivity. This brings it into competition with Shire's Adderall treatment. Japanese house Nomura says it is a blow to sentiment at Shire but other brokers saw Adderall as a big profits earner.

Earlier this month, Shire chief executive Rolf Stahel was forced to step down amid allegations of a boardroom rift over company strategy.

Drinks group Diageo fell 3p to 682p as the 'Sage of Omaha' Warren Buffett denying he had any interest in buying its fast-food chain Burger King.

Diageo put Burger King up for sale earlier this year but a decline in its performance has forced it to reduce the price after a consortium of venture capitalists, led by Texas Pacific Group, dropped its $2.26bn (£1.45bn) offer. Word is the consortium is now prepared to offer only $1.6bn.

Capita fell 16p to 237p following a bullish trading update. WestLB Panmure has dropped its recommendation on the shares from buy to outperform. Capita says it is comfortable with analysts' forecasts for 2002 and 2003. They are forecasting a rise in pre-tax profits from £72m to £97m.

Royal Bank of Scotland lost 24p to 1574p. There are signs that stock from the sale of a 3% stake (86.7m shares) held by Banco Santander Central Hispano earlier this week is starting to filter back into the market place. More doom and gloom for the anaemic-looking health clubs sector.

Shares in LA Fitness and its bigger but more-troubled rival Fitness First took a bath after LA admitted seeing signs of the downturn that has racked its rivals. It is reviewing its expansion programme while the key post-Christmas turkey membership time of January is crucial for the sector. LA slumped 20 1/2p to 110 1/2p and Fitness First, which recently put out a profit warning, crashed 8p to 133 1/2p.

LA's difficulties will not help Holmes Place, down 8p at 88 1/2p, in its bid talks with venture capitalist Bridgepoint.

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.