Markets: Weir among risers in an upbeat FTSE

ENGINEERING giant Weir Group was among the biggest risers yesterday after reassuring analysts that it was on track to hit profit targets this year.

Shares in the Glasgow-based pumps and valves maker have suffered in recent months on concerns that the US shale gas industry is slowing down.

Following the briefing, broker Jefferies reiterated its “buy” rating and 2,185p target price for Weir, saying it is in line to make pre-tax profits of £470 million.

Analyst Andy Douglas said: “This will be taken well by the market, as a lot of bad news is priced in at the moment.”

Shares in Weir were 4.6 per cent higher at 1,503p.

The wider market was also upbeat, as investors bet that central bankers on both side of the Atlantic will sooner or later release more money into the economy. The FTSE 100 was 95.2 points higher at 5,586.3 after a fall in UK inflation gave the Bank of England more leeway to act.

Premier Inn and Costa owner Whitbread was the biggest riser in the top flight after impressing investors with a 4.5 per cent rise in first quarter like-for-like sales. It added 118p to 1,967p.

Outside the top flight, struggling supply chain software company Kewill agreed to an increased takeover offer by a US fund, worth 110p a share, valuing the group at around £102.7m. Kewill has now withdrawn its recommendation of a lower approach from US private equity group Symphony. But traders are betting Symphony may return to the table. Kewill closed at 112.5p, up 4 per cent.

Plexus, the Aberdeen-based oil and gas engineering firm, saw its shares jump 6 per cent after it unveiled a deal with Italian oil producer Eni and US equipment maker Oil States Industries to develop well-heads. The Aim-quoted stock was up 6.5p at 112.5p.

NEW YORK: US stocks rose last night on hopes that the Federal Reserve will agree to extend stimulus measures as the economy struggles to recover and the eurozone’s debt crisis gets worse.

The Dow Jones Industrial Average gained 95.51 points, or 0.75 per cent, to end the day at 12,837.33. The Standard & Poor’s 500 Index advanced 13.20 points, or 0.98 per cent, to close at 1,357.98. The Nasdaq Composite Index rose 34.43 points, or 1.19 per cent, to finish the session at 2,929.76.