G4S shares boost aids FTSE 100
Jul 19 2012
Shares in under-fire Olympic security firm G4S enjoyed a reprieve as bargain-hunters bought into the battered stock.
G4S, whose boss Nick Buckles agreed with MPs on Tuesday that its staffing debacle had been a "humiliating shambles", closed 4.9p higher at 244.9p having fallen sharply over the previous four sessions.
Meanwhile, the wider FTSE 100 Index was up 1% or 56.7 points ahead at 5685.8 amid improving signs on the other side of the Atlantic, although analysts warned against being "over excited" about Wednesday's rally.
US data on housing starts showed home construction increased by a better-than-expected 6.9% between May and June to an annual rate of 760,000 - the highest level in nearly four years. This helped offset Tuesday's disappointment over US Federal Reserve chairman Ben Bernanke's failure to signal more stimulus measures for the world's biggest economy.
The pound was down against the US dollar at 1.56 after Bank of England minutes hinted at a possible interest rate cut and additional quantitative easing in the months ahead. Sterling was up against the euro at 1.27.
More Than firm RSA Insurance recovered early session falls seen after it revealed a £50 million hit from more than 6,500 UK weather-related claims since June. It also revealed a £35 million impact from two earthquakes in Italy in May and said its combined operating ratio, which shows claims and expenses as a percentage of premium income, had been affected. Shares were later 0.6p higher at 108.9p.
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