COMMENT
This Week's Market Movers

Biggest Movers In The FTSE 350 (as at 10am Fri)

In a week that saw the US Federal Reserve hike interest rates by a quarter point, London shares rose. At mid-morning on Friday, the FTSE was 1% higher on the week.

Banks have been in focus with trading updates from some of Britain's biggest lenders attracting attention. Lloyds TSB (LSE: LLOY) was first out of the stalls on Monday. It galloped 7% higher to 459p after it said annual profits should be in line with forecast. Read more.

Meanwhile, HBOS (LSE: HBOS) said its profits should be "comfortably" ahead of expectations. Britain's fourth-biggest bank added that it will buy back more shares next year. HBOS, which jumped 10% to 839p, also said it aims to raise its dividend growth rate.

Other banks with trading updates were Alliance & Leicester (LSE: AL.) and Egg (LSE: EGG). Alliance & Leicester, which firmed 1% to 899p, said trading this year had been in line with expectations but it warned of tough competition. Egg hardened 6% to 99p on news of strong demand for its credit cards, loans and insurance.

London Stock Exchange (LSE: LSE) surged 30% to 557p after a bid approach. The company said it had rejected a £1.3b offer from Deutsche Boerse, though investors expect the German exchange to return with a higher offer. Moreover, there is speculation that Euronext could submit an offer too.

Takeover news also helped security systems specialist Novar (LSE: NVR), which surged 14% to 189p. It has agreed to be bought by US conglomerate Honeywell (NYSE: HON). Smoke alarms maker Kidde (LSE: KID), up 2% to 165p, also accepted a trans-Atlantic takeover approach. It will be acquired by United Technologies (NYSE: UTX) for £1.4b.

LA Fitness (LSE: LFS) vaulted 15% to 246p after it received a number of approaches, and ITNET (LSE: ITN) rallied 16% to 324p following an agreed bid from Serco Group (LSE: SRP). However, headhunter Whitehead Mann (LSE: WHT) tumbled 29% to 102p. The company said its suitors, which commenced takeover talks in early November, had pulled out of discussions.

Builders' merchant Travis Perkins (LSE: TPK) agreed to pay £950m for DIY chain Wickes. Staying with home improvement, Kingfisher (LSE: KGF) shares hovered around 301p despite warning that sales growth at its B&Q division had slowed. However, Carpetright (LSE: CPR) piled on 10% to 1,180p after it rolled out a 17% rise in first-half profits.

The motor trade featured strongly this week Shares in Avis Europe (LSE: AVE) plunged 17% to 50p after it said its final dividend will be axed. On a brighter note, car dealer Inchcape (LSE: INCH) jumped 7% to 1,766p after it steered profits estimates higher. Reg Vardy (LSE: VDY) made headway too, up 3% to 485p, after results. Read more.

There was mixed news for oil explorers during the week. Shares in Burren Energy (BUR) jumped 8% to 419p after positive drilling reports at its field in Congo. However, Petrel Resources (LSE: PET) crashed 56% to 44p when Reuters said two contracts that it has been pursuing in Iraq had been awarded to rivals. Cairn Energy (LSE: CNE) collapsed 21% to 1,089p over a tax dispute with the Indian government.

Finally, AstraZeneca (LSE: AZN) retreated 6% to 1,924p on Friday after a disappointing study into its lung cancer drug Iressa, which failed to show survival benefits.    

The Market Next Week

The announcement calendar looks a little sparse as companies begin to wind down for the Christmas break. However, Persimmon (LSE: PSN) and Wimpey (LSE: WMPY) should shed more light on the state of the housing market with their trading updates on Tuesday and Wednesday.

Notable announcements next week

Monday: Misys
Tuesday: Persimmon and Fibernet
Wednesday: Wimpey