LONDON (ShareCast) - London's blue chips managed to drag themselves back into the blue by the close of play, largely courtesy of renewed bid speculation surrounding Kazakhstan-based copper miner Kazakhmys.

Rival Kazakh miner ENRC is again the name in the frame. The ferrochrome group has a deadline of until 16 May to make an offer for its compatriot. The gossip was of an offer of up to 2,500p.

Business software giant Sage was another riser, having reported first-half growth that was in line with management expectations except for the troublesome Sage Healthcare Division in North America.

Miner Lonmin was among the top risers after it reported a 63% hike in first-half underlying earnings per share to 132.5 cents thanks to bumper platinum prices.

High street fashion chain Next led the retail sector higher even after sales fell 3.9% to £738.9m in the first quarter, with the group cautious about the outlook given the soaring cost of food, fuel, mortgages and taxes. Next Directory held up better, with sales off 1% to £220.8m.

Household goods giant Unilever posted a 7.2% rise in first quarter underlying sales, ahead of forecasts.

Chilean miner Antofagasta also did well on news it has reached a settlement with local farmers regarding the el Mauro tailings dam at its Los Pelambres mine.

Enterprise Inns fell following yesterday’s 29% jump on news that the pub owner is eligible to convert to a low tax real estate investment trust (REIT) if an internal restructuring of the group is undertaken. Morgan Stanley lowered its recommendation on the company to ‘equal-weight’ from ‘overweight’ following the surge.

Fellow pub group Punch Taverns, meanwhile, moved higher after it said late yesterday that it continues to consider the opportunity of a potential conversion to REIT status on its merits.

Old Mutual slipped after sales improved by a less than expected 2% in the first quarter to £426m due to disappointing UK sales and market volatility, which hit sales of unit trusts. Fellow insurers Admiral and Standard Life are also lower.

Mobile phone retailer Carphone Warehouse is to sell a 50% stake in its retail business for £1.1bn to US consumer electronics retailer Best Buy and the two groups will form a new company.

Insurer Royal & Sun Alliance reported a 15% rise in net written premiums to £1.721bn in the first quarter and said it remains confident of achieving a strong result in 2008 and beyond.

Spirits group Diageo has maintained full year guidance for 9% organic operating profit growth in the year ending 30 June 2008 after a trading in the third quarter continued in line with the first half. In the nine months to 31 March, organic net sales growth was 7%, as expected.

Commercial broadcaster ITV has been whacked with a huge £5.68m fine for misleading callers to its premium rate phone-in competitions. "The fine, which is by far the highest imposed by Ofcom or any of the previous regulators, reflects not only the seriousness of ITV's failures but also their repeated nature," Ofcom said in a statement.

Enodis led the FTSE 250 risers after the group, which makes restaurant equipments for McDonalds, has agreed to be taken over by Illinois Tool Works for £1.029bn.

Investment bank Close Brothers has kept its outlook broadly the same as it was at the end of the first half, with uncertain market conditions set to affect the securities and corporate finance divisions.

Newspaper publisher Trinity Mirror said the advertising environment remains difficult and volatile as it posts a 3.1% decline in advertising.

There have been more gains for TT electronics today as the sensor and electronic components firm bagged a contract with the US armed forces worth $90m over the next five years.

Oil explorer Sibir Energy said total production in the first quarter rose 50% to a record 5.9m barrels compared to the same period last year.

Shares in Financial Objects plunged after the financial software solutions provider warned that its first half performance will be 'significantly' behind that recorded in the same period last year and said it is more cautious with regard to the full year.

Satellite communications group Inmarsat’s wholly-owned subsidiary Inmarsat Holdings said it is well on track to meet its revenue and cash flow growth objectives for the year.

Engineer Renishaw expects pre-tax profit in the year to 30 June to exceed its previous high of £38.1m, achieved in 2006, partly aided by the positive impact of currency exchange rate movements.

Shares in oil and gas explorer and producer Frontera Resources jumped 17% after positive results at its oil drilling operations in the Republic of Georgia.

Telecoms billing software firm Intec shot ahead as it confirmed it had received an early stage bid approach. "It is currently highly uncertain whether this approach will lead to any further discussions taking place," the statement added.

FTSE 100 - Risers
Kazakhmys (KAZ) 1,914.00p +10.13%
Sage Group (SGE) 226.50p +7.35%
Lonmin (LMI) 3,408.00p +6.10%
Next (NXT) 1,302.00p +6.03%
Eurasian Natural Resources (ENRC) 1,288.00p +5.92%
Antofagasta (ANTO) 809.50p +5.47%

FTSE 100 - Fallers
Carphone Warehouse Group (CPW) 289.00p -3.43%
British Energy Group (BGY) 715.00p -2.59%
Barclays (BARC) 463.00p -2.53%
Enterprise Inns (ETI) 499.00p -2.16%
United Utilities (UU.) 703.00p -2.02%
SABMiller (SAB) 1,173.00p -1.92%

FTSE 250 - Risers
Enodis (ENO) 288.25p +18.38%
Imperial Energy Corporation (IEC) 945.50p +9.88%
Quintain Estates & Development (QED) 447.25p +9.09%
Signet Group (SIG) 77.25p +7.29%
DSG International (DSGI) 70.00p +6.46%
Bellway (BWY) 795.00p +5.86%

FTSE 250 - Fallers
ARM Holdings (ARM) 105.00p -4.33%
Marston's (MARS) 224.75p -3.95%
Ashmore Group (ASHM) 287.50p -2.62%
Hochschild Mining (HOC) 380.00p -2.44%
Galiform (GFRM) 77.50p -2.21%
easyJet (EZJ) 300.00p -2.20%

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