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FTSE 100 stay firm 0.74 pc at record.

LONDON:A strong Wall Street, continuing bid speculation, firmer FTSE futures and gilts all contributed to a robust rise on the blue chip index, leaving the FTSE 100 at a new closing high of 3,535.7, up 25.9 points on the day.

The broader market was also higher, indicating further likely gains in the short term, traders said. But trading volumes were comparatively light, reflecting the absence, due to the holiday season, of many market players.

The previous closing high of 3,520.3 was made on February 2, 1994. The all-time intra-day peak of 3,539.2 was hit the next day. The Dow index was up over 30 points by the London close.

"The Dow and FTSE futures have been a big help today but in terms of turnover the market went to sleep in the afternoon. The biggest problem is a lack of people but prices look as if they have more to run," one senior trader said.

Tim Brown Equity strategist at UBS said: "Most people have a policy of being fairly fully invested. There are still cash injections (through bids) either actual or threatened and this is encouraging that."

He added that economic statistics recently have shown that the economy is not racing away and that there are few worries about possible higher interest rates in the short term.

"On the GDP figures overall the economy is slowing down and internal inflationary pressures are weak...on interest rates there will be no change for some time," said Gerard Lyons, chief economist at DKB International.

Glaxo Wellcome added 20-1/2p to 798-1/2p. BioChem Pharma Inc said it found antiviral drug Lamivudine effective in the Phase II study of chronic Hepatitis B infection. Lamivudine is being developed by Glaxo Wellcome.

Smith & Nephew Plc rose 5p to 196-1/2 amid persistent hopes of a bid for the healthcare group, although the company itself denied being approached. nL21403076.

Inchcape fell 8-1/2p to 347-1/2 hit by profit taking following a sharp rise from the start of August when several brokers made positive recommendations.-Reuter