For much of yesterday, it looked as if the stock market party had fizzled out for the time being. The two main market indices, the FTSE 100 and AllShare, spent most of the morning period marginally easier, while the 250 and SmallCap were able to post only modest gains.

But the market picture was transformed in the afternoon, with hints of more takeover activity - subsequently confirmed when Unigate upped its bid for Terranov. By the end of the session, the FTSE 100 had sneaked ahead to close at another record, finishing 5.2 firmer at 6,598.8.

The FTSE 100 was underpinned by another powerful performance by the market's two significant oil groups, BP Amoco and Shell. Financials moved back to the top of the buyers' lists yesterday, with Prudential and Sun Life occupying the top two positions in the FTSE 100.

There was gloom among the bookmaking stocks, with a Stanley Leisure profit warning taking the wind out of Ladbroke's sails. Turnover in equities was 1.2 billion shares.