FTSE finishes week on positive note
The FTSE 100 Index finished the week above the 6000 mark today as the world's biggest bank gave a boost to the market.
The Footsie gained more than 1% after first-quarter results from Citigroup failed to fulfil the worst fears of some traders despite a US$5.1bn (€3.23bn) loss and billions more in write-downs.
The figures kicked off Wall Street trading in upbeat mood, with the Dow Jones Industrial Average seeing gains of more than 200 points. In London, the Footsie closed 76.1 points ahead at 6056.5.
The Citigroup figures also helped banks claw back some earlier losses after speculation that Royal Bank of Scotland may appeal to shareholders for billion of pounds in funds.
The NatWest parent - the UK's second biggest bank - dropped more than 3% in early trading on the reports of the rights issue, but later reversed this into a gain of almost 5%, or 18p to 384p, as investors welcomed a likely end to the uncertainty over the company's balance sheet.
Elsewhere in the sector, Halifax Bank of Scotland, another at the centre of recent speculation over a potential rights issue, was 1%, or 8p, higher at 558p in another turnaround
Lloyds TSB gained 10.5p to 453.25p, while Alliance & Leicester, which has also faced concerns over its funding position amid the credit crunch, moved into positive territory with a gain of 23p to 533p.
In an otherwise quiet day for corporate news, many blue-chip players also benefited from positive broker comments.
These included Dairy Milk maker Cadbury Schweppes, ahead almost 3%, or 16.5p to 573.5p, after an upbeat note from broker Lehman Brothers, which highlighted the firm as a possible takeover target.
Plumbing and heating giant Wolseley - a victim of the slump in the US housing market - also enjoyed better fortunes today after analysts noted that the business had more scope to cut costs. The firm moved 23p higher to 533p.
And Argos owner Home Retail Group was tipped to gain market share by UBS despite tougher consumer conditions, cheering the stock 12.25p to 263p, a gain of almost 5%.
Miners, however, held back even further progress for the wider market after concerns that Kazakhmys and Eurasian Natural Resources could face export taxes on their metals. Kazakhmys was the leading Footsie faller, off more than 6%, or 110p, to 1610p, while ENR fell 57p to 1215p
In the FTSE 250, pub groups Mitchells & Butlers and Punch Taverns ended talks over any possible deal between the two today. This hit shares in both companies early on, with Punch shedding 9.5p to 612.5p, although M&B later recovered to stand 4.25p higher at 350p.
The Footsie's four biggest risers were Schroders up 57p at 1066p, Kingfisher ahead 6.4p to 129.5p, Home Retail Group up 12.25p to 263p and Alliance & Leicester, which gained 23p to 533p.
The Footsie's four biggest fallers were Kazakhmys which lost 110p to 1610p, ENR down 57p to 1215p, Vedanta Resources off 52p to 2348p and Anglo American, which lost 60p to 3372p.
