ITV ready for return to premier league as adverts leap ahead

ITV looks set for a glorious return to the FTSE 100 index next month as the advertising market bounces back from recession.

On current valuations, the X Factor and Downton Abbey broadcaster, booted out of the top flight in September 2008 after its shares plummeted, will be the only company moving up to the shares premier league, taking the place of miner African Barrick Gold.

Promotion would mark the climax of a long honeymoon period for ITV chairman Archie Norman and chief executive Adam Crozier, who joined ITV last year.

And, with two four-day weekends in a row to look forward to thanks to the Royal Wedding, April should be a bumper month for the broadcaster.

Television ad spend is said to be up 18% for the month on a year earlier. This would be the 17th consecutive month of advertising growth for ITV as big brands, who slashed their spending dramatically when the credit crunch hit, splash out again.

The FTSE changes will be worked out on closing prices on Tuesday 8 March, with changes taking effect after the close of business on Friday 18 March. Promotion to the top flight sparks buying from tracker funds.

It also emerged today that asset manager Blackrock has taken its stake in the broadcaster above 11%. ITV climbed 2.1p to 80.2p while African Barrick Gold was 5p stronger at 524½p.
London's equities slipped, with the FTSE 100 index sinking back below the 6000 mark. The benchmark shed 13.58 points to 5986.49 as oil stocks led the market lower.

After its figures disappointed investors, Royal Dutch Shell took the wooden spoon, sinking 74p to 2177p. BP dropped 5.7p to 482.3p and BG Group was down 17½p to 1445p in sympathy.

So it was left to a small-cap crude stock, Encore Oil, to provide sector investors with some cheer.

The North Sea explorer's shares climbed 6p to 145.4p amid speculative buying on rumours that its drilling operations were ahead of schedule.

Encore is being tipped by some smart-cookie sector watchers as a prime candidate for a takeover.

A 25% jump in quarterly sales from luxury handbags and scarves maker Hermès pushed fellow fashion house Burberry up 20p to 1150p.

Aggreko surged 54p to 1480½p as Bank of America Merrill Lynch said buy on valuation grounds, applauding its strength in emerging markets.

On the mid-tier, Ocado gained ½p to 247.6p despite HSBC, one of the eight banks which advised the internet grocer on its flotation last year, trimming its rating from buy to hold.

It said: "Full-year results give more credibility to management plans, but it's still not certain what profitability level Ocado can achieve by improving its productivity."

HSBC also argued that bid hopes are likely to fade; the shares have recently been buoyed by rumours that Morrisons or Asda-owner Wal-Mart might bid, despite cool-headed traders pouring scorn on the talk.

Centamin Egypt was the star performer on the mid-tier, rising 5.4p to 144p, as fears over the impact of the Cairo protests on its mining operations receded.