LONDON (ShareCast) - Rises outnumber falls by 3 to 1 among Footsie constituents, as the market floats higher, helped by a recovery by the mortgage banks and transport groups.

Alliance & Leicester and Lloyds TSB lead the banks, while Firstgroup is doing well in transport helped by lower oil prices and a bullish update from rival Go-Ahead, as is Stagecoach.

Go-Ahead anticipates delivering full year performance in line with expectations and “significantly ahead” of the record results last year with buses driving the improvement.

Inter-dealer broker ICAP is wanted after yesterday’s announcement that it is to form a strategic alliance with Korea’s largest inter-dealer broker, Korea Money Brokerage, to develop electronic spot foreign exchange trading in Korea.

Tobacco companies are busy as the OFT launches a probe into alleged cigarette price-fixing involving tobacco companies and retailers. Imperial Tobacco and several supermarket groups were named by the OFT as under investigation.

Pubs group Mitchells & Butlers says it is not in talks over a possible bid for the whole company, but remains in discussions over a stake sale. "The board is continuing discussions with private equity investors in relation to a possible investment for a stake of up to 29.9% in Mitchells & Butlers at a material premium to the current share price," the owner of O'Neill's and Harvester pubs and restaurants said in a statement.

Ad agency WPP's first quarter revenues rose by 14.1% to £1.558bn. Revenues in constant currency were up 9% and on a like-for-like basis revenue growth was almost 5%, continuing the growth rates seen throughout 2007 and before, it said. January and February were strong across the board, but March was slower, "somewhat surprisingly in Western Continental Europe." Throughout the quarter, North America remained relatively strong.

Life group Aviva's total life and pensions new business climbed to £8.17bn in the first three months of 2008, up from £7.75bn a year ago and in the middle of market forecasts. Growth in the US, Asia and central and eastern Europe offset tougher conditions in the UK.

Car dealer Pendragon says despite a difficult background its performance in the first three months of the year has been encouraging. Metrics of unit sales volumes and operating profits per unit are trending in a positive direction and the group is confident of a satisfactory outcome to the year at the upper end of expectations, it added.

Software group Axon is well ahead on an upbeat trading statement while IBSOpensystems has recived a bid approach.

Stockbroker WH Ireland is sharply lower after deciding that an unsolicited preliminary bid approach announced earlier this week is not in the best interests of shareholders.

Computer games developer SCi tumbles on news it is raising £60.1m from a fully underwritten placing and open offer at a big discount to last night’s closing price.

Independent Resources received a massive boost as Italian energy firm ERG agreed to help the AIM listed group develop its underground gas storage facility in the Po Valley.

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