Although hoteliers across the world are nervous about this year’s prospects, the gloom was lightened for InterContinental Hotels Group, which welcomed a new guest to its share register yesterday. Guoco, of Malaysia, declared a 3 per cent stake, triggering a 6 per cent rise in IHG shares.

Guoco, which bought the 8.5 million shares in an off-market deal on Monday, owns Thistle Hotels, the UK brand, and has built a 25 per cent stake in Rank, the bingo and casino operator, and so there was inevitable speculation that the purchase might lead to a bid. However, sources close to the Malaysian leisure group said that the deal was likely to be only a portfolio investment made because it believes IHG, up 35½p to 597½p, is cheap.

Guoco, which also owns the Clermont Club casino in the West End of London, will be hoping it has picked IHG’s nadir. The hotelier’s brands, including Crowne Plaza and Holiday Inn, are seen as a beneficiary of the weak pound, since most profit is made in America. However, IHG’s development programme will be hurt by lack of credit and the US hotel industry is struggling with low occupancy rates.

Meanwhile, rebounding mining stocks helped London’s leading index to a positive first day of trading for 2009. However, the FTSE 100’s rise of 127.62 points, or almost 3 per cent, to 4,561.79 was widely seen as a false dawn.

Miners took up eight of the top ten positions, with Xstrata up 107½p at 747½p, Rio Tinto up 204p at £16.94 and Vedanta rising 82p to 693½p. Rio and Xstrata should be able to avoid rescue rights issues if demand from China recovers by the end of next year, as industry bosses hope. Analysts say that this makes Rio and Xstrata a speculative buy for those who can stomach the risk.

However, the rebound bore all the signs of short covering – hedge funds closing short positions. Prices of nickel and copper gained on speculation that they would be given greater weighting in commodity indices, which will have their annual rebasing this month. But the fundamentals are poor, with mounting metal stockpiles. Ryan Kneale, analyst for BetsForTraders, the City bookmaker, said: “Today’s rally lacks any real conviction.”

Profit-taking cut 18p off GlaxoSmithKline, at £12.66½, despite reports from America that Ranbaxy, the Indian group, was last month unable to launch a copycat version of Imitrex, Glaxo’s profitable migraine drug, as planned. The US regulator, the FDA, is investigating Ranbaxy for alleged data fraud and sub-standard manufacturing and has banned the import of some of its medicines. If Indian manufacturing issues are to blame, Glaxo would get a clear run until its patent ends in June, said Panmure Gordon.

Politicians calling for an extension beyond January 16 of the ban on the short-selling of shares in banks lifted Royal Bank of Scotland 3.1p to 52½p, and HBOS 3½p to 72½p.

A surge in flat-screen TV sales at John Lewis helped Kesa Electricals and DSG Internationalboth rise 1p, to 89¼p and 18½p, respectively, and Car-phone Warehouseto gain 5¼p at 95p.

New York: Investors on Wall Street started the new year with a big rally as they brushed off a weaker than expected report on manufacturing. The Dow Jones industrial average ended at 9,034.69 points, up 258.30, its first close above 9,000 in two months.

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