The index ended just below the 14-year high scaled this month and was less than 2 per cent away from a record peak set in 1999. Analysts said the positive momentum following M&A talks could help the index to set a new record high in the near term.
"The improving economic backdrop and the pick up in business confidence are likely to be supportive for a pickup in M&A activity," said
"In addition, valuations are not stretched and there appears to be an element of pent up demand as a result of the depressed level of deal activity we have seen over the last few years."
Although Stryker denied it was planning a bid, traders said the return of takeover speculation would continue to support
"Depending on the capital structure applied and the prevailing debt financing costs, we think there would be substantial additional non-operational, purely financial gearing related benefits in such a transaction.
But some disappointment on the earnings front countered the M&A froth in the market. Kingfisher,
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