XANSA shares hit a two-month high last night as traders took reassurance from a trading update. The shares have come under pressure over the past 12 months as the company restructured its unprofitable US unit and shifted its focus to expansion of its Indian outsourcing business.

In July the shares hit a two-year low of 66p, having reached 126¼p as recently as last November. With analysts already positive on the strength of the company’s position in the offshore outsourcing market, yesterday’s statement to investors at its annual meeting gave further reassurance that the company’s recovery is on track.

Alistair Cox, chief executive, said that the reshaping of the company was complete and trading in the first four months of the new financial year had been in line with expectations. Dealers took the opportunity to pick up stock, pushing Xansa up 4p to 80p.

COLT Telecom once again featured among the top performers, gaining 3p to 48¼p, as the business telecoms group announced the early redemption of £317 million worth of bonds. The move will save the company £18 million in interest payments. The FTSE 250 closed up 8.9 points at 6,259.1.

The prospect of a break-up at Rank Group led analysts to stick a 380p price tag on the company. The shares edged up ¾p at 287¼p after Bear Stearns said that the planned separation of Rank’s media assets had the potential to unlock further shareholder value in the leisure group. Earlier this month Rank said that it was the right time to consider separating its Deluxe Film and Deluxe Media businesses.

Analysts believe that the Deluxe businesses have acted as a deterrent to investors looking to investment in the gaming industry ahead of deregulation. With that deterrent removed, the company’s potential value would be unlocked.

Shares of Detica Group jumped 55p to 650p after the IT group said that recent trading had been strong and announced the launch of StreamShield Networks, an internet security subsidiary. SurfControl, off 4½p at 585½p, announced it had agreed a software deal with the new unit.

Antisoma unveiled full-year numbers and said AS1404, its potential blockbuster lung cancer drug, had entered phase two trials. The shares ticked up ¼p to 14p. Big Food Group added 2½p to 92¼p as takeover talk did the rounds again.

Explore Markets

• United States

• Europe

• Japan

• China

• Russia

• The Gulf

• India

• Africa

Times Recommends

• Lies and cover-up at MG Rover exposed by report
• High oil prices push manufacturing costs up
• Primark founder steps down as chief executive