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Market MoversRoyal & Sun Alliance 80p up 5

Market MoversRoyal & Sun Alliance 80p (up 5.75p, 7.7 per cent). Posts top of the range first quarter figures.Next 1,402p (up 73p, 5.5 per cent). Likewise, Avocet Mining ticked 1p higher to 63p as its chairman Nigel Scott picked up 50,000 shares at 60.5p.Nettec was 0.88p better at 7.75p as the AIM-listed investment company Acquisitor sold its entire 13 per cent holding in the cash shell. Nettec, which has more than £12m of cash on its balance sheet, is in the process of winding itself up. The company has called an extraordinary meeting for 14 June, when it will put its proposal to shareholders.There was some surprise to see a drop in Zytronic’s share price after a solid set of interim figures from the maker of touch screens. Dicom put on 10p to 780p after the data storage specialist completed a series of bullish presentations to City institutions.Among smaller companies, Galahad Gold put on 1p to 12.5p as its finance director James Slater, the son of the veteran investor Jim Slater, disclosed the purchase of 2.5 million shares at 11.45p He now controls more than 11 per cent of the company.

Spirent dropped 1.5p to 61.5p in reaction to the sale of 12,000 shares at 63.5p by My Chung, an executive director at the telecom testing group. GKN has in the pasted hinted at being interested in the disposal of the holding and Italy’s Finmeccanica is believed to be interested in buying it. Goldman thinks GKN will use the cash it raises, likely to be in the region of £1.2bn, for a new acquisition.Morgan Stanley told investors to switch out of Diageo, down 1p at 758.5p, and into its drinks rival Allied Domecq, 1.25p better at 451.75p. ING was heard moving its top clients into LogicaCMG, unchanged at 205.25p, before next week’s trading statement from the IT services group.

Any reduction by Mr Marks of his stake would add to the stock’s liquidity, a lack of which has deterred institutional investors in the past, argues the broker.GKN improved 3p to 218.25p as Goldman Sachs suggested that the engineering giant is a lot closer to securing the sale of its 50 per cent stake in the helicopter maker AgustaWestland than most in the City expect. ING reckons the group’s management team will reiterate its guidance of a return to growth in 2004.The FTSE 100 index closed 40 points higher at 4,453, while the FTSE 250 put on 41 points to 6,010. At the time of the numbers, John King, the retailer’s chief executive, declined to comment on takeover rumours, but said he was confident that he retains the support of his chairman.Elsewhere in the sector, French Connection recovered from its recent weakness, gaining 23p to 428p, as Numis urged investors to buy into the stock. The main worry surrounding FC lately has centred on the likely impact of the poor spring weather on trading in the UK. Gossips reckon he is looking for a bid closer to the 300p level.Meanwhile, dealers noted that Matalan has been holding meetings with brokers and institutional investors in the wake of its annual results earlier this month. Among those the retailer’s management met was the broker Evolution Beeson Gregory, which found them to be in good heart.

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