London's equity market regained its poise yesterday, shrugging off Thursday's three-figure setback, responding to positives from Wall Street and a bombardment of bids among the market's smaller firms.

At the close, the FTSE 100 showed a 54.6 gain at 6,552.2, only 46.6 away from its record close and extending the rise over the week to 124.2, or 1.9 per cent. The FTSE 250 closed 33.0 up on the session at 5,849.6, for a week's gain of 65.1, or 1.2 per cent, while the FTSE SmallCap, up 12.3 yesterday, showed a week's gain of 48.0, or 1.9 per cent, at 2,522.23.

While many market traders and observers have become increasingly nervous about the market's level, some strategists still see the market as offering good value.

The takeover spree in the smaller stocks saw no fewer than seven bid stories develop, involving stocks in the house-building, motor parts and chemicals areas. Dealers began to focus on the prospects for another cut in British interest rates next week when the Bank of England's monetary policy committee meets. Turnover was a good 1.2 billion shares.