The FTSE 100 Index was in a better mood after the Bank Holiday weekend, up 29.2 points to 6,844.9, as it caught up following gains on European markets.
Shares in AstraZeneca took a hit as investors digested the announcement that US rival Pfizer had thrown in the towel on its £69billion takeover attempt of the UK pharmaceutical company.
The stock fell 76p to £42.52, leaving its market value below £54billion – more than £15billion under its suitor’s offer.
Elsewhere in the top-flight, Intercontinental Hotels Group climbed strongly – up 3%, or 76p to £23.02 – on reports it had rebuffed a £6billion bid.
State-backed Lloyds Banking Group rose nearly 2%, or 1.2p to 77.2p after it announced it was to float one-quarter of its revived TSB business next month.
The biggest risers in the Footsie included Arm Holdings up 35p to £9.17, International Consolidated Airlines Group up 13.5p at 392.9p and Travis Perkins up 54p to £17.24.
Among the biggest fallers were Fresnillo down 27p to £8.22, Randgold Resources off 77p at £44.28 and Sainsbury’s down 4.7p to £3.99.
In the FTSE 250, engineering data and IT systems provider Aveva closed up 8.7%, or £1.89 to £23.50 after a well-received set of annual results.