LONDON (AFP) - Leading shares managed to close just above the gain line, as an eight percent rise in Amvescap together with an easing of the oil price, offset a slide in heavyweight miners and a weak showing in New York, dealers said.
At the close of trade in London, the FTSE 100 index was up 12.7 points at 4,642.8, below its early high of 4,663.4. The wider indices were also higher.
Volume was strong, with 2.7987 billion shares changing hands in 223,1717 deals.
Shell was the most traded stock, with 405 million shares being exchanged, followed by Vodafone which saw 210 million shares switch owners.
Over on Wall Street, indices clawed back some of their earlier losses, helped by a further fall in oil prices. Profit takers had initially moved in at the open after hefty gains last night.
The DJIA was down 6.38 points at 9995.62, while the Nasdaq was off 1.15 at 1,968.8.
There was a raft of earnings releases, with strong results from ExxonMobil and Viacom, offsetting disappointing figures from Verizon Communications and JDA Uniphase.
In economic news, initial jobless claims rose unexpectedly by 20,000 to 350,000 last week. Economists were expecting only a slight increase in initial claims to about 335,000.
However, the four-week moving average of new claims fell by 5,500 to 343,250 in the week ending October 23, the lowest level in five weeks.
Crude futures, which had tumbled five percent on Thursday, lost more ground, falling to a two-week low. December crude was last down 61 cents to 51.85 dollars a barrel in New York.
In London, Amvescap's third quarter numbers pleased, sending the shares up 8.44 percent to top the leaderboard at 298-3/4 as traders expressed relief that the fund manager managed to match market expectations and did not make a rights issue.
Meanwhile, the easing of the oil price failed to dent support for Shell, as the shares jumped 11-3/4 pence to 435-1/2.
The Anglo-Dutch oil major announced plans for the unification of the group leading to one listed company, one board, one chairman, and one chief executive.
Other blue chip energy groups fell back in reaction to the easier crude price -- BP lost six pence to 529-1/2, while BG shed 3-1/2 to 352-3/4.
Airlines staged a rally on the back of the weaker oil price however, with British Airways 3.87 percent higher at 214-1/2, the day's second biggest riser, and Ryanair up 0.12 euros at 3.98.
Meanwhile, investors fled the mining sector after China's central bank raised interest rates for the first time in more than nine years in a move to cool its fast-growing economy and put a lid on inflation.
Xstrata topped the FTSE 100 losers list, down 6.57 percent at 839, BHP Billiton was off 21-1/2 at 558, Rio Tinto fell 41 to 1,423, Anglo American lost 36 to 1,203 and Antofagasta was the second worst performer, shedding 4.31 percent to 999.
Xstrata was the worst performing blue chip miner, as dealers expressed concern the group could raise its offer for WMC, the Australian base metals and uranium miner, after its 7.4 billion Australian dollar bid was rejected.
However, Cazenove said the WMC deal is seen as earnings accretive to Xstrata and advised investors to buy the shares on any weakness Thursday.
Elsewhere, GlaxoSmithKline shares reversed the morning's gains as the group's third-quarter pretax profit failed to inspire.
The drugs giant posted a 10 percent fall in its pretax pre-exceptional profits to 1.52 billion pounds from 1.69 for the third quarter, dented by the weaker dollar and a disappointing performance by its antidepressants Paxil and Wellbutrin.
Glaxo fell three pence to 1,148, after hitting a high of 1,181 Thursday morning.
Also on the downside, shares in ICI were down 5-1/4 to 211-1/2 after cautious comments from Cazenove in the wake of Thursday's top-of-the-range third-quarter results from the chemicals giant.
Cazenove is understood to be concerned that ICI will see gross margin pressure in both the fourth quarter and 2005.
Elsewhere, Boots shares lost eight pence to 663 after the health and beauty retailer reported slightly weaker-than-expected interim results.
Despite Boots also announcing that it would meet full-year expectations, CAI Cheuvreux said it remains cautious on the stock due to the fact that after recent investments group sales growth is still weak.
Cheuvreux reiterated its 'underperform' rating on Boots.
Whitbread also fell back, losing 20-1/2 pence at 810-1/2 as analysts mulled the group's long-awaited strategic review and share buyback plans which accompanied Thursday's first-half results from the leisure group.
While the news was welcome, many thought the divestment programme did not go far enough, while others questioned whether the focus on the continuing businesses, and a sharp increase in the level of capital expenditure, would be enough to drive returns to the sort of figure the company is looking for.
ABN Amro moved its rating to 'hold' from 'buy'.
10/28/2004 - 16:35 GMT - AFP