Another high for Footsie as Dow surges

The FTSE 100 index continued its remarkable run by securing another all-time closing high, rising 15.70 points to 7,778.64.

David Madden, market analyst at CMC Markets said the UK index was following in the footsteps of the American markets which are continuing to make progress.

“One notable difference the FTSE and the US indices is the London market is making relatively small strides higher, which suggest a canned excitement,” he added.

Engineering firm GKN was the biggest riser on the top flight after rejecting a £7 billion takeover bid from Melrose.

The company said that it rebuffed an “opportunistic” and “unsolicited” proposal from the turnaround specialist as it undervalued GKN. The offer represented a price of 405p per share, comprising 80 per cent in new Melrose shares and 20 per cent in cash. Shares closed down 87.3p to 420p.

Away from the top tier, Carillion dropped nearly 29 per cent after it emerged that lenders to the construction giant effectively rejected a rescue plan proposed by the debt-laden group.

It is understood that a business plan tabled by the group on Wednesday was knocked back because it failed to present a solid proposition for restructuring the business. Sources also suggested that the proposal’s methodology was found wanting. Accountancy firms are believed to be on standby in the event of an administration. Shares dropped 5.79p to 14.2p. The biggest risers on the FTSE 100 included

Smiths Group ,up 84.5p to 1,652p, and Marks & Spencer, up 8p to 309.2p.