Shares in bookmaker William Hill raced 10% ahead in their first day of conditional trading, distancing themselves from the nervousness besetting London's stock market.

William Hill stock, which was issued at 225p, sprinted to 241p within a few minutes of the market opening, and closed on Monday at 246.5p.

It shows that with a decent business and sensible banking there is still interest in new issues

Eric More, Gartmore

Earlier, the shares had reached 249p.

The rise took the stock market value of the bookmaker, which runs more than 1,500 shops, past the �1bn mark.

And it steadied nerves among London investors concerned over a 6% fall in shares prices last week, and lingering jitters in the new issues market.

William Hill's full listing takes place on Thursday, when private investors will also be able to trade.

Telecoms jitters

Satellite company Inmarsat is to become the latest firm to announce it has postponed flotation plans, according to the Financial Times.

The firm, which has twice before shelved flotation plans, and worth an estimated �1bn, is said to have been deterred by the poor recent performance of telecoms shares, one of the worst performing sectors in London this year.

"This is the worst time for Inmarsat to float," one investor told the FT.

"Sentiment towards the telecommunications sector is pretty ugly right now."

Can Wickes fix it?

Fears over the new issue market were raised in May when shares in music retailer HMV fell on their first day of trade. The shares closed on Monday 20% below their 192p issue price.

And Punch Taverns later said it was scrapping its flotation plans because of the depressed market, before changing its mind and going ahead with the offering

Companies set for flotation include DIY store Focus Wickes, which on Monday set a target of 230-290p for its shares, valuing the company at �0.95-1.15bn.

Analysts had estimated that the firm, which saw sales rise 20% to �763.5m in the November to April period, was worth �1.2-1.6bn.

Cash raised from the sale will be used to reduce the firm's debt burden, and underpin finances drained by a revamp in its 427-strong store portfolio.

Further details on the sale will be published on 2 July.

Quality pays

Analysts said the reaction to the proved there was still an appetite in London for shares in respected firms.

"It's quite an achievement," said Eric More, senior investment manager at Gartmore Investment Management.

"It shows that with a decent business and sensible banking there is still interest in new issues."

William Hill is to use cash raised from its flotation to fund an expansion programme.