London open: Blue chips up again

1st Sep 2010 08:44

Leading shares have continued yesterday's rally after decent economic data out of China this morning.China's official purchasing managers' index rose to 51.7 in August from a 17-month low of 51.2 in July, causing an improvement in commodity prices and overall sentiment.Australian stock markets were also boosted by better-than-expected second quarter GDP. In company news, Soco International has discovered oil at the Te Giac Den appraisal well, TGD-2X, offshore Vietnam. Testing will take about three weeks. Troubled oil giant BP has raised more than $400m (£260m) through the sale of two of its interests in Malaysia to help meet its bill for the Gulf of Mexico disaster. Wealth management firm Hargreaves Lansdown has had a record year despite tough market conditions, lifting profits by 18%. Global business media company United Business Media (UBM) has bought Astound, a privately owned US virtual career fairs business. Technology-focused holding company Emblaze is in advanced negotiations to sell its holdings in Formula Systems (1985) Limited, the information technology global solutions provider. The Nasdaq-listed company was purchased by Emblaze in November 2006. Mouchel, the support services group, has increased the size of its cost cutting programme to £25m from £10-15m as it awaits the government's public spending review. The firm said the medium and longer term outlook is becoming "increasingly positive" as the new government's policies are implemented. The order book has also held steady at £2bn. Sales in the second half of 2010 are expected to be ahead of previous expectations at IQE, the supplier of advanced wafer products and wafer services to the semiconductor industry. Dry cleaning to workwear hire group Johnson Service reported a 17% increase in half-year profit and said it is well placed for a successful second half.