Market report: Wednesday close

SHARES hit a 16-month high in today's shortened session as the market extended gains into a sixth day, during which the FTSE 100 has advanced 121 points.

The index today rose 3.8 points to 4444.7 in thin trading ahead of its lunchtime close. But traders warned New York may suffer a reverse when it opens today after the news overnight that the US has recorded its first case of Mad Cow disease in Washington state.

Vodafone was the most heavily traded blue-chip share, with 52m changing hands. It rose 1/2p to 138 3/4p. National Grid Transco slipped 1/2p to 399 1/2p. A line of 11.6m shares went through at 400 1/4p.

One of the biggest institutional shareholders in Canary Wharf, the Docklands developer under siege from three potential buyers, has cut its stake by 40%. Credit Agricole Lazard Financial Product Bank has sold 10m shares leaving it with 15m, or a 2.56% stake.

Lazard is a financial adviser to Canary Wharf, whose interim chairman Sir Martin Jacomb warned on Monday it was 'possible there will never be an offer that succeeds from anyone'. Canary was unchanged at 265 1/4p.

Total market turnover on the quietest day of the year received an early boost when two lines of 18.92m shares each in Govett Asian Recovery Trust, down 3/4p at 138 1/4p, went through at 146 1/2p as part of a delayed trade. It follows a tender offer by the investment trust for its own shares.

Wood Group was unchanged at 132 3/4p after broker UBS slashed its 12-month target from 170p to 140p while retaining its neutral stance. The shares were mauled yesterday by news its gas turbine servicing division had been badly affected by the crisis in the US power generation industry.

Film and children's TV producer Alibi Communications has undergone a financial restructuring, converting £250,000 of its overdraft into cumulative redeemable preference shares. Pre-tax losses rose from £218,000 to £292,000 in the year to June. The AIM-listed shares were unmoved at 4 3/4p.

Cash-strapped engineer Charter rose 3p to 102 1/2p after gaining some breathing space in the fight against some of its US loan note holders.

A New York court has denied a motion of summary judgment brought by Charter's opponents, who argue it has breached some of the terms. The action will go to trial on 2 February. Charter is trying to raise £52m through a disposal programme by March to secure its future.

Diabetes and heart testing group Drew Scientific was giving its investors some sharp stabbing pains after reporting sliding sales and rising first-half losses. The shares slid 1 1/8p, or 20%, to 4 1/2p.

The takeover in America of Immunex by Amgen has enabled British drugs firm Cambridge Antibody Technology to revise its US agreement over antibody development. Amgen has offered improved fees, milestone payments and royalties on future sales. CAT's most lucrative earner could be its Humira drug for the treatment of rheumatoid arthritis. CAT was unmoved at 458p.

Drug development using human tissue rather than animals has enabled Pharmagene to conclude an agreement with US pharmaceuticals giant Bristol-Myers Squibb to use its series of validation programmes.

The three-year deal, for an undisclosed fee, helped Pharmagene add 4 1/2p to 76 1/2p.