Hanson was the best performer in the City last week, amid a flurry of rises by construction and materials firms after a month of torpor.

Its shares soared 24.7% to 拢10.71 spurred by confirmation that German firm HeidelbergCement was considering making a bid for it. Other materials firms also enjoyed rises. Marshalls was up 8.7% to 387p and CRH rose 14.1% to 拢24.78.

T Clarke rose 6.3% to 拢24.23 after announcing it had signed lock-in agreements with its suppliers and manufacturers to protect itself from copper price volatility.Costain rose 4.8% to 49.50p after reaching financial close on the first phase of its Three Shires PFI joint venture in Lincolnshire.

Housebuilders enjoyed a strong week. Persimmon and Taylor Woodrow both rose, as the City watched to see whether the former would bid for the latter. Redrow, another potential takeover target, rose 6.2% to 643p.