Market report: Wednesday close

OIL shares reinforced a rally by blue-chips, gaining on a sharp jump in crude prices. The Opec meeting in Vienna approved a cut in output quotas by 900,000 barrels a day from 1 November - ahead of peak winter demand.

US light crude was 95 cents firmer at $28.08 a barrel, while London benchmark Brent futures gained $1.01 to $26.53. With the prospect of increased downstream earnings, BP rose 3 3/4p to 422 3/4p and Shell added 4 1/4p to 386p.

Top stocks were positive from the open, buoyed by a strong showing overnight on Wall Street. The FTSE 100 pared most of its early gains, closing ahead 14.7 points at 4236.4, after New York opened mixed.

Victims of the dollar's slide this week staged a revival. InterContinental Hotels gained 4 3/4p to 503p. Hilton rose 1/4p to 185 1/4p. Financials were stronger, with Old Mutual up 2 3/4p to 96p.

Mining giant BHP Billiton gained 62p to 420 3/4p, and defence equipment exporter BAE Systems 1/2p to 178 1/4p.

Anglo-Dutch household goods group Reckitt Benckiser suffered a 22p setback to 1199p as UBS downgraded it to neutral from buy. The shares ran up from 940p in March to a high of 1230p earlier this week, and some consolidation is expected as a result.

Reported talks to ensure an 'impartial' succession to outgoing chief executive Tony Ball, between 10 of BSkyB's largest institutional shareholders and senior independent directors of the satellite broadcaster, seem doomed to fail.

Negotiation with chairman Rupert Murdoch has to be from a position of strength, something the pressure group does not possess. Murdoch's younger son, 30-year-old James, will almost certainly become chief executive although his title may be changed as a sop to investors. BSkyB fell 3 1/2p to 635 1/2p.

Money broker ICAP jumped 8 1/2p to 1283 1/2p as it forecast that first-half figures would be 'significantly ahead' of last year thanks to busy government bond markets and interest rate volatility.

Alizyme surged to a two-year high of 133 1/2p, up 11p, as Phase II clinical trials of its treatment for irritable-bowel syndrome were completed successfully. It also has in its portfolio a potential blockbuster with its treatment for obesity.

Securicor's 'in line' trading statement today ensured that Deutsche Bank's 'too cheap to ignore' comment on Tuesday would reinforce its share price, up 4p to 89p and ever closer to the German's target of 100p.

Rail and bus operator FirstGroup rose 6 3/4p to 285p as it benefited from the Strategic Rail Authority's decision to award the franchise on principal intercity services across the North of England to joint-venture subsidiary FGK. The franchise will run for eight years, starting early next year, with an option to extend for a further five years.