The FTSE-100 hit new highs yesterday after two surveys showed conditions among manufacturers and retailers were improving. The Chartered Institute of Purchasing and Supply showed manufacturing still shrinking but at a slower rate than of late, while the CBI's distributive trades survey showed retail sales growing at their fastest rate for seven months in March.

At one point by mid-afternoon the FTSE-100 Index was up 103 points at a new high of 6399. By the close the shine had faded from the market, however, and the index finished the week at 6,330. BP Amoco's confirmation of its £16 billion sterling (#23.7 billion) takeover of America's Atlantic Richfield fuelled leading shares in the hope that the urge to merge may infect other companies. But BP Amoco languished on the widely trailed announcement, falling 39p to £10.09 1/2 (#14.9). Instead it was the powerhouses in the telecoms, financial and pharmaceuticals sectors which drove the day's gains. Biggest gainers included Vodafone, up 31p to £11.82 (#17.5) and Orange, ahead 27 1/2p to £8.94 (#13.26).