LONDON (ShareCast) - Leading shares made briefly made it into the blue during the morning session but are now lower again as investors nervously await the US market's reaction to the fleshed out US mortgage rescue plan.

Plumbing supplies firm Wolseley leads the risers even though it reported a 77% drop in full-year pre-tax profits. Shareholders were cheered by news that the company does not intend to issue new equity to raise cash.

Higher commodity prices lift miners ENRC, Vedanta, Kazakhmys, BHP Billiton and Rio Tinto, while in the oil sector BG Group, Royal Dutch Shell and BP are wanted on the back of a firmer oil price.

Life assurance stocks are going well, led by Old Mutual and Standard Life but banks are mixed. Barclays, Royal Bank of Scotland and Lloyds TSB have recovered from a rocky start to the day, but HSBC and HBOS remain in the doldrums.

Bradford & Bingley, meanwhile, is higher on weekend reports that UK authorities are trying to broker a takeover of the buy-to-let mortgage group.

International Ferro Metals is up after it returned to a full year profit as it hiked production and said it was considering a share buyback.

Yellow Pages group Yell has suspended dividend payments as it renegotiates its banking covenants and attempts to reduce its overall indebtedness.

Russia-focused gold miner Peter Hambro's net profit fell sharply in the six months to June. Sales were up by more than 50% to $146m, up from $93m, but net profits fell to $14.8m from $21.8m after one-off adjustments. Total attributable gold production was c.147,000 oz for the period, up by c.9% compared to c.134,300 oz in the first six months of 2007.

British Gas owner Centrica has bought Caythorpe Gas Storage Limited (CGSL) from Warwick Energy for £70m in cash. CGSL owns the onshore Caythorpe gas producing field near Bridlington in East Yorkshire. Caythorpe has planning permission for conversion to an onshore gas storage.

Gem Diamonds has discovered a 478 carat white diamond at the Let¡eng Mine in Lesotho. The diamond, which is yet to be named, ranks as the 20th largest rough diamond ever to be recovered, the group said.

Electrical cable, plug and connectors specialist Volex has put its Power Products division up for sale after a strategic review of its business. Proceeds from a disposal would develop and strengthen the remaining divisions with surplus cash returned to shareholders.

Venture Production's Chestnut oil field has commenced production. Venture is the operator and holds a 69.875% working interest in the part of block 22/2a containing the Chestnut field.

Restaurant group Clapham House has continued to trade satisfactory in the second quarter of the financial year and said it is highly positive about its mid term market prospects.

The share price of mobile software specialist Artilium bounced after the company said it knows of no reason for its recent share price fall. The company suggest the volatility might have been caused by speculative trading activities outside the control of the board.

• News Channel