London entered the final quarter of 2010 in positive mood with sentiment lifted by hints from incoming BP boss Bob Dudley the group is ready to restore the dividend payments suspended during the Gulf of Mexico crisis.
Dudley, who becomes chief executive of the oil company today, says the board would meet soon to discuss restoring payouts next year, according to reports.
The blue chip index opened up 0.8% or 44 points at 5,592, with Carphone Warehouse leading the winners, rising 5.53%. BG Group, Spectris, Shaftesbury and Logica were also among the leading stocks, rising between 2.5% and 5% each.
Spectris, the mid-cap instrumentation and controls company, has bought American maker of rugged industrial networking components N-TRON for $51m (£32m).
Among the largest fallers was drugs group Hikma Pharmaceuticals, down 1.23%, which moved to calm fears about the impact of a plan by US regulators to ban unapproved oral colchicine products to treat gout.
The company said it will comply with any FDA regulatory requirements related to the sale of colchicine "if such a notice is served", but still predicts 20% revenue growth for its US generics business for the full year 2010 "irrespective of the timing of such notification".
Meanwhile Cooper Controls has launched a rival bid for Mount Engineering at 82p a share, topping Redhall's 70p a share offer.
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