Aggreko nets World Cup share surge

A World Cup win for generator hire specialist Aggreko saw the group score a shares surge as it confirmed a contract for next year's tournament in Brazil.

CPP Group sold card protection on behalf of lenders including HSBC and Royal Bank of Scotland

A World Cup win for generator hire specialist Aggreko saw the group score a shares surge as it confirmed a contract for next year's tournament in Brazil.

The Glasgow-based group was up more than 8% as it also announced that full-year results would be ahead of expectations.

Its climb came as the wider top-flight brushed off worries about a meeting of the US Federal Reserve later this week, with the FTSE 100 Index rising by more than 1%, or 82.2 points to 6522.2.

Investors have been anxious that the Fed could decide to begin pulling back from its multi-billion dollar monthly programme of quantitative easing support for the world's biggest economy.

However those worries seemed to drift away later in the day as, despite new data showing a continued improvement in the US economy, investors bet that policy makers would hold off on any pre-Christmas tightening.

The optimism helped Wall Street's Dow Jones Industrial Average climb by more than 100 points.

Meanwhile better-than-expected eurozone economic data saw Frankfurt's Dax and Paris's Cac 40 surge ahead strongly - the latter despite worse-than-hoped for performance from France.

On currency markets, sterling was flat at 1.63 US dollars and 1.19 euros.

In the City, Aggreko's contract wins for the World Cup as well as the Commonwealth Games in Glasgow provided a sporting boost after a 2013 in which it has suffered in comparison with the Olympics last year.

In a trading update, the group also said results this year would be slightly ahead of expectations, with revenues now pencilled in at £1.57 billion and pre-tax profits at least £335 million - though some way below last year's £365 million.

Shore Capital analyst Robin Speakman said the update provided slightly better news on trading although the World Cup and Commonwealth Games contract wins, while pleasing, were "not of the same scale as last year's Olympics".

But traders snapped up the shares, sending the price up by 129p to 1645p.

At the other end of the top-flight movers board, RSA Insurance was down more than 2% amid more speculation about the group's future, following the departure of chief executive Simon Lee last week and a warning that its dividend was under threat.

Shares tumbled 7% over the course of Friday and slid for a second session at the start of the week, off 2.4p to 90.1p.

Meanwhile, house building stock investors were spooked by comments from Labour leader Ed Miliband that construction giants' profits were going "through the roof" while not enough homes were being built.

Mr Miliband outlined proposals to tackle hoarding of land by giving councils the right to charge fees or purchase such sites.

He insisted that Labour would back home-builders but traders were unnerved at the rhetoric, sending Crest Nicholson down 2.7p to 359p and Taylor Wimpey down 0.3p to 105.6p on the FTSE 250.

FTSE 100-listed Persimmon was also down during the session but later recovered to finish 8p up at 1144p.

The biggest FTSE 100 risers were Aggreko, up 129p to 1645p, CRH up 68p to 1487p, Mondi up 37.5p to 945.5p and Diageo up 55p to 1938.5p

The biggest FTSE 100 fallers were RSA Insurance down 2.4p to 90.1p, Aberdeen Asset Management down 3p to 453.1p, ARM Holdings down 5.5p to 995.5p and Next down 20p to 5445p.