Good gains for FTSE
The FTSE 100 Index soared above the 6400 barrier today as the market notched its biggest weekly gain since before the summer's credit crunch.
The Footsie closed up 83.4 points at 6432.5 after gaining nearly 300 points in the last three days on a rebound from banks and hopes of an interest rate cut in the United States.
The top flight suffered a torrid start to the trading week, having lost more than 1% on Monday. Today's rise saw banks and miners benefit, with both dominating the leaders board.
Blue chips were given a further late afternoon lift as Wall Street trading showed another positive start to the session.
On the Footsie, Barclays rose 4%, or 23p to 563p, followed by Lloyds TSB up 21p at 495p and Royal Bank of Scotland, up 15.75p to 459p.
Alliance & Leicester also furthered gains seen yesterday after it reassured that losses from the credit squeeze were not as bad as feared. The stock surged ahead another 6% or 44p to 730p.
Stricken lender Northern Rock, which had been on the back foot for most of the day, closed in the black after a late surge. Shares gained 1.3p to 118p amid speculation over bids from JC Flowers and investment group Olivant, with talk surrounding new moves to challenge the Virgin-led group's approach.
Heavily-weighted miners moved ahead on prospects of consolidation in the sector. A note from Credit Suisse saying that Xstrata may look to take over rival Anglo American as platinum prices rally helped Xstrata's shares rise 106p to 3419p, while Anglo added 132p to 3286p.
The cheer rubbed off on Vedanta Resources, which led the mining gains with a 112p rise to 2304p.
On the fallers board, retailers led share declines after consumer confidence figures from GfK NOP fell to their lowest level since March 2003. B&Q parent Kingfisher was worst hit, down 5.4p at 152.3p, with Marks & Spencer also suffering, off 11p at 583.5p.
Meanwhile, broadcaster BSkyB lost ground after a downgrade from Goldman Sachs. The stock shed 9.5p to 625p.
Pubs group Mitchells & Butlers was also enduring a second tough day on the Footsie, down another 1%, or 8.5p to 577p, adding to the drop yesterday on flat profits and a downbeat outlook.
FTSE 250 brewer and pubs group Marston's gained 4% despite reporting a 3% dip in annual profits. The decline had been expected following the summer floods and Marston's offered some encouragement by reporting a healthy start to the new financial year. Shares were up 12.5p at 336p.
Fellow second tier group Burren Energy, the exploration and production firm, soared by 9% after Italian energy giant Eni looked set to buy the group in a £1.74bn (€2.43bn) deal. Shares rose 107p to 1249p.
Meanwhile, takeover speculation caused FTSE 250 firm Colt Telecom to rocket 18%, or 27.75p, to 182.25p.
The biggest Footsie risers were Standard Chartered up 118p at 1914p, Alliance & Leicester ahead 44p at 730p, Tullow Oil up 35.5p at 671p and Vedanta Resources up 112p at 2304p.
The biggest Footsie fallers were Kingfisher down 5.4p at 152.3p, Diageo off 23p at 1093p, Invesco down 13p at 627.5p and BAE Systems down 9.25p at 460p.
