The divergence of performance between the London market's leaders and second and third-line stocks was apparent again yesterday, with the FTSE 250 leaving its senior index for dead for the third consecutive session.
And that divergence would have been much greater but for the proposed multi-billion pound merger of Asda and Kingfisher, revealed yesterday, which saw the food retailing sector erupt, plus another stunning performance by BP Amoco. Representing almost 10 per cent of the FTSE 100, the company is now valued at over £100 billion sterling. Dealers said the shares had rocketed behind a rising oil price and a growing stock shortage.
The major market story of the day was the shift of cash out of telecoms, pharmaceuticals and some banks, into cyclical areas of the market.
While the FTSE 250 gained from the move, adding 88.9 to finish at 5,796.2, a weary FTSE 100 was left with a 45.5 decline at 6,420.6. The FTSE SmallCap index made a modest advance to finish 18 higher at 2,467.1.
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