The markets can be a funny place sometimes: ordinarily, victory would be a good thing, but not in this topsy-turvy world. Yesterday, therefore, rumours that WPP would end up winning its bid battle for Taylor Nelson Sofres (TNS) after all meant that Sir Martin Sorrell’s media giant was one of the biggest fallers in the FTSE 100.

The advertising and marketing services group fell 20½p to 469¾p. Sir Martin has offered a mixture of shares and cash for TNS, the market research consultancy, worth £1.1 billion and there is talk that GfK, its German bid rival, is struggling to raise the funds to trump Sir Martin.

TNS fell 6¾p to 268½p, still just above WPP’s offer, worth 262p at yesterday’s close. Sir Martin’s takeover is designed to reduce exposure to advertising and to support Kantar, WPP’s smaller market research business, but there are concerns that even market research firms will be exposed to a recession and the timing of the acquisition may be wrong.

On Friday Collins Stewart analysts moved WPP from “hold” to “sell”, with a 400p price target, pointing out that in the advertising downturn of the early 1990s ad agencies took another 18 to 21 months to reach their lowest point after newspaper share prices had reached their bottom. They recovered only after GDP growth had begun to increase.

The FTSE 100 rallied 27.9 points to close at 5,404.3, driven by commodity stocks as metals and oils prices recovered. Ferrexpo, the Ukrainian iron ore miner, rose 20½p to 290½p, while Lonmin lifted 121p to £25.31 and Kazakhmys gained 62p to £14.14.

Land Securities rose 69p to £12.55 and British Land24½p to 701p as the property sector was boosted by Minerva, up 48p to 120p, confirming that Limitless, of the United Arab Emirates, had offered 160p, subject to due diligence. But the shares kept a discount to the offer price amid fears that Limitless may not like the look of the debt-laden Minerva’s books.

Southern Cross Healthcare, which two weeks ago said that it had received inquiries from private equity but no approach, gained 16¾p to 122p.

Laxey Partners, the activist investor, last week raised its stake in Shaftesbury, the West End retail property owner, to 18 per cent, and there is talk of Middle Eastern interest. It gained 18p to 399¼p.

Most banking stocks were boosted by better-than-expected figures from Bank of America. HSBC, up 20½p to 814½p, was also helped by reports that CIC, of China, might buy a stake. There were two sector laggards: HBOS was down 17½p to 264½p, after its underwriters managed to sell only a third of the shares left unsubscribed from the rights issue, and Lloyds TSB fell 5¼p to 325¾p ahead of first-half figures next week amid fears it would have to cut its dividend.

Aviva, the Norwich Union insurer, fell 14½p to 524½p before first-half results on Wednesday. Panmure Gordon is forecasting that the slowing economy will hit new sales but offers “buy” advice, nonetheless.

Hikma Pharmaceuticals fell 82¼p to 426¾p after the Jordan-based company said that its American generics business was likely to make a first-half loss of $6 million (£3 million).

— New York: Wall Street fell amid concerns of rising oil prices. The Dow Jones industrial average closed down 29.20 points at 11,467.30.

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