Aggreko on top as investors warm

TEMPORARY power supplier Aggreko finished at the top of the FTSE 100 index's risers board yesterday after City analysts highlighted its growth prospect.

Goldman Sachs reiterated its "buy" recommendation and raised its target price on the Glasgow-based firm ahead of Monday's trading update.

The broker said: "The recent acquisition by Horizon of APR Energy - Aggreko's largest competitor - highlights the unfulfilled demand and attractive growth opportunities in the emergency power market." Aggreko closed up 45p.

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In contrast, Edinburgh-based CCTV systems maker Indigo Vision plunged to the foot of the Aim fallers board after a profits warning wiped 125p or 28.4 per cent off its share price to close at 315p, recovering from a year-low of 220.3p.

In the wider market, the Footsie recovered early losses to finish ahead as European leaders expressed a determination to tackle Greece's debt crisis.

The FTSE 100 Index rose 16.13 points to close at 5,714.94 after Germany's Angela Merkel and France's Nicolas Sarkozy said they were committed to euro stability and wanted a quick resolution of the Greek crisis, while also easing fears that private holders of Greek bonds would be forced to take heavy losses.

On Wall Street, the Dow Jones Industrial Average soared almost 100 points in early trading, with sentiment further helped by reports from Greece that a new aid package worth €150 billion (132bn) may be on the way.

The reports were unconfirmed but it was enough to prompt a rally by the euro, which rose to €1.13 against the pound, while sterling fell back against the dollar to $1.63.

The stronger greenback meant resources firms were able to drive the improvement in the FTSE 100 Index, with oil and other commodity prices all brighter following the nosedive seen earlier this week.

Miners dominated the risers board with Anglo American up 25p to 2,836p, while Lonmin added 22p to 1,404p and under-pressure debutant Glencore saw a much-needed improvement of 6.2p to 482p.

Glencore had been the leading faller earlier in the session as sentiment remained negative towards the FTSE 100 newcomer in the wake of its flotation at 530p.

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Car parts manufacturer GKN also recovered from a weak start, reversing a 2 per cent fall seen after Thursday's announcement that a fatal explosion at a plant it owns in Tennessee would cost it 30 million prior to any potential recovery from insurance claims. Shares later improved to stand 3p higher at 205.1p. Among retailers, B&Q-owner Kingfisher slipped 3.3p to 264.7p to lead the blue-chip fallers board, although a note by Peel Hunt had a positive affect among FTSE 250 retailers after it singled out some structural growth stocks from the sector.

Analysts upgraded Halfords to "buy" from "hold" due to its recovery opportunities, causing shares in the car parts retailer to rise 3.3p to 393.3p, while it said Debenhams - up 0.95p to 68.85p - offered value and self-help opportunities.

The broker was also positive on fashion firm SuperGroup, which rose amid speculation Abercrombie & Fitch could be interested in a bid. Shares were up 8 per cent or 66p at 903p.

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