FTSE gains as White House says Bush wins

LONDON – Britain’s FTSE 100 share index held morning gains to hover just below its highest level in more than two years on Wednesday after the White House said US President George W.

Bush had won re-election, boosting the major drugmakers and the broader market. By 1114 GMT, the FTSE 100 was up 19 points, or 0,4 per cent, at 4,712.2.The index earlier hit 4,723.6, just below last month’s peak of 4,732.9, but the early positive mood was tempered by uncertainty about the result from the key state of Ohio, which delayed a final verdict.The prospect of Bush retaining the presidency fuelled a 1 percent rally in US stock futures and gave a boost to European markets, as Wall Street is seen as more comfortable with a Republican win.Dealers said there would also be relief if there is a clear-cut winner.”Markets had probably got to a point where they didn’t mind who won,” said Andrew Bell, strategist at Carr Sheppards Crosthwaite.”If Kerry won he probably wouldn’t have been able to implement any big policy changes because he wouldn’t control Congress and if Bush won, that doesn’t imply any policy change at all.”Drugmakers spearheaded the rise as they were seen benefiting from Bush’s health care policy.AstraZeneca rose 2,1 per cent as Lehman Brothers also upgraded its rating on the stock to “equal-weight” from “underweight”, while GlaxoSmithKline added 1,1 per cent despite losing the right to its 10p dividend payout, as it was also aided by a stronger dollar.-Nampa-ReutersBy 1114 GMT, the FTSE 100 was up 19 points, or 0,4 per cent, at 4,712.2.The index earlier hit 4,723.6, just below last month’s peak of 4,732.9, but the early positive mood was tempered by uncertainty about the result from the key state of Ohio, which delayed a final verdict.The prospect of Bush retaining the presidency fuelled a 1 percent rally in US stock futures and gave a boost to European markets, as Wall Street is seen as more comfortable with a Republican win.Dealers said there would also be relief if there is a clear-cut winner.”Markets had probably got to a point where they didn’t mind who won,” said Andrew Bell, strategist at Carr Sheppards Crosthwaite.”If Kerry won he probably wouldn’t have been able to implement any big policy changes because he wouldn’t control Congress and if Bush won, that doesn’t imply any policy change at all.”Drugmakers spearheaded the rise as they were seen benefiting from Bush’s health care policy.AstraZeneca rose 2,1 per cent as Lehman Brothers also upgraded its rating on the stock to “equal-weight” from “underweight”, while GlaxoSmithKline added 1,1 per cent despite losing the right to its 10p dividend payout, as it was also aided by a stronger dollar.-Nampa-Reuters