FTSE 250 aerospace and defence group Cobham has been referred to the Financial Conduct Authority's enforcement division for investigation in connection with its handling of inside information prior to its trading update and announcement of a rights issue on 26 April 2016.
Stocks began the morning with a small upwards push, tracking similar sized gains overnight on Wall Street, with traders looking towards official US non-farm payrolls data later on Friday.
London´s top flight index was being called to start the session higher, with traders now focused on Friday's US jobs report for February and the ensuing reaction in the Treasury market, as Thursday´s ECB meeting faded in the rear-view mirror.
Admiral: JPMorgan upgrades to Overweight with a target price of 2100p.
Cobham is planning its second £500m rights issue in less than a year, after it sank to a huge £848m loss for 2016, though its shares rose as the defence specialist avoided a sixth profit warning in 15 months.
US President Donald Trump plans to push ahead with a budget that includes a £54bn, or 9%, rise in spending on armed forces, with an equivalent cut for spending on domestic agencies.
AstraZeneca: Jefferies reiterates Buy with a target price of 5250p.
Stocks in the aerospace and defence space bore the brunt of selling after Cobham warned on profits for the fifth time in just over a year.
Cobham warned on profits for the fifth time in just over a year, as it made further extensive write-downs after judging its balance sheet is "clearly not strong enough".
Cobham has become something of a specialist in profit warnings, having issued four since 2015, but the shares are still worth 'holding', The Times´s Tempus said.
Aerospace and defence group Cobham posted group trading profit below guidance for the year ended 31 December and said it was not recommending a final dividend.
Royal Dutch Shell B: UBS reiterates buy with a target price of 2500p.
Anglo American: UBS reiterates neutral with a target price of 950p.
Price gains for some key steel-making ingredients such as iron ore and thermal coal as well as in Chinese rebar futures kept pushing shares in Evraz and many of the main mining groups higher.
BAE Systems's group director for business development took advantage of a two-day spike in the shares of the aerospace and defence engineer to take some profits.
Segro: Barclays keeps at overweight with a target price of 520p.
European stocks started the week on the front-foot, with a much stronger-than expected reading on the single currency area's manufacturing and services sectors helping to offset a mixed batch of corporate results.
Softer conditions in the wireless and satellite communications (satcom) markets have led Cobham to issue a profit warning.
Construction and industrial engineering stocks led the way higher, with shares in aerospace and defence close behind thanks to the favourable tailwind from the pound's depreciation.
At their meeting this week, the Bank of England's rate setters are expected to pause and take stock of the impact on the economy of its recent interest rate cut, while UK inflation is set to continue its modest rise figures are likely to show. While inflation is likely to be boosted by the week pound in coming months, the Sunday Times said the City expected a slight rise for August, while analysts are confident the Monetary Policy Committee (MPC) will leave rates on hold but could ease further before the end of the year.