Bus companies have been weak in recent days, mainly on worries about their fuel costs soaring as the price of crude hits record highs.
This all changed today, after strong third quarter figures from Go-Ahead group. Most pertinently, the Metrobus and London Central bus operator claimed it would be able to recover any increased fuel costs through increased efficiency and fare increases. Bad news for anyone wanting a bus ride but good news for shareholders, and the rest of the sector rose on the back of this statement.
Go-Ahead accelerated 207p to £16.57, making it the biggest riser in the FTSE 250. And, surprise surprise, rival FirstGroup is the top of the FTSE 100 index, up 25p to 553p. Stagecoach, up 18.25p to 221.25p, and National Express, 50.5p better at 916p, also benefited.
In all, it was a good end to the week. By the close the FTSE 100 had reached its best level since 14 January, and closed up 40.7 points at 6091.4.
Could the worst now be over, with future banking rights issues priced into the market and central bank intervention easing the credit crunch? It is a sign of calmer times that people are now suggesting the Federal Reserve may not cut US interest rates next week. Up until now, hefty rate cuts have been expected - and delivered.
But let's not get too carried away. The banks are still holding toxic loans of unquantifiable amounts, the housing market is sliding both in the UK and US, and consumer confidence is being hit left, right and centre. It is a fair bet that markets will remain volatile for some time yet.
