Expectations of pre-Christmas torpor proved premature yesterday as bid possibilities pushed equities higher.

The FTSE 100 index rose 58.7 to 6,739.5, just three points off its all-time closing high.

But the overall gain was slightly illusory. It really represented some very big jumps by a small clutch of individual companies and the continuing pull of e-commerce, telecoms and the Internet.

It was certainly true that busy buying of Marks & Spencer options

early in the day set alarm bells ringing - the shares jumped 18 per cent on unusually heavy turnover.

However, the prospect of one of the UK's most famous high street landmarks losing its independence has been under discussion for a while and the rise did not initially motivate the market.

Apart from M&S, only United Utilities had no link with information technology and much of that company's rise represented a big bounce from earlier water sector weakness.