The London Stock Exchange bounced 6 per cent to £11.55, ending its recent long slump all the way from £19.50 on hope of a bid from Nasdaq or the New York Stock Exchange.

Analysts at Sanford Bernstein, a key bear on the stock, cut their sell rating to neutral yesterday saying that the shares were now low enough to make them affordable to the two acquisitive rival bourses. The bourse reports full year results next Thursday.

ICAP, the interdealer broker, also jumped, 4.5 per cent to 664p, on a report of a rumoured bid from ICE, the InterContinentalExchange in London which trades commodities. But ICAP also is due to report full year figures on Tuesday and it is expected to be positive following a very bright statement from rival Tullet Prebon yesterday which talked about good market conditions.

In the FTSE 250 Rightmove lost 4 per cent to 370p as shareholder Halifax began selling its 13 per cent stake via a placing.

Logica fell 3 per cent to 124.25p after Goldman Sachs cut to sell saying its shares had rallied too far following strong first quarter figures for this year. "A strong 1Q leads us to raise our 2008 expectations, but does little to alleviate concerns about the outlook into 2009. We fear the lengthy and costly restructuring process ahead runs the risk of falling short of target with its time line slipping against a backdrop of slowing demand, especially in the core UK market.

British Energy rose 7 per cent to 725p after it said it has received two bids at higher than 680p.

The FTSE 100 rose 84.2 to 6336 with almost every sector gaining including banking, miners and oils as short sellers closed their positions ahead of the weekend.

Explore Markets

• United States

• Europe

• Japan

• China

• Russia

• The Gulf

• India

• Africa

Times Recommends

• Bovis and Redrow axe close to 1,000 jobs
• Irate M&S shareholders demand fresh talks
• Investors rally to B&B amid fears of contagion