FTSE closes above 6000 mark
The London market closed above the psychologically key 6000 barrier for the first time since February today thanks to strong gains in the mining sector and hopes of another cut in interest rates.
The FTSE 100 Index rose 67.7 points to close at 6014.8 as investors started the week in a positive mood, with expectations mounting for a quarter point cut in rates to 5% when the Bank of England announces its latest decision on Thursday.
The move above 6000 has seen the blue chip index rise by more than 10% since last month's lows and experts said there was potential for further advances as investors remain upbeat.
David Jones, chief market strategist at IG Index, said: "The next big hurdle that some chart-based traders are eyeing could well be the 6120 highs seen in February - the FTSE rolled over from here and started a 700 point drop. But at the moment sentiment remains undeniably bullish and not even something of a meandering start to trading on Wall Street has dented enthusiasm."
The Dow Jones Industrial Average shook off a lacklustre start to trading to stand almost 80 points up in the early session.
Miners dominated the Footsie riser's board after Goldman Sachs upgraded the sector, causing Kazakhmys to lift 106p to 1697p and Vedanta Resources to rise by 106p to 2287p.
With metals prices on the march, BHP Billiton and Xstrata added 68p to 1685p and 160p to 3867p respectively.
Nuclear power station firm British Energy was one of the biggest gainers in morning trading, although the group later gave back gains to close 2.5p higher at 713.5p after newspapers said European power firms, including EDF, had approached British Gas owner Centrica about a joint bid for the nuclear generator. Centrica was also enjoying a rise, with shares up 12.25p to 315.75p.
Speculation of a better offer for Friends Provident from New York private equity firm JC Flowers saw shares in the life assurer rise 3.1p to 137p, despite Flowers today insisting its 150p-a-share offer was "attractive".
On the losers board, Halifax Bank of Scotland shed the most, losing 13p to 560p, or 2%, as the group's recent rally came to a close.
The bank has gained around 50% since its dramatic mid-March plunge on the back of rumours over its funding position, which have since become the subject of a City watchdog inquiry.
In the second tier, Michael Page was one of the biggest loser after revealing a sharp reduction in UK growth during the first quarter this year. Shares were down more than 5%, or 16.25p, to 288.75p.
Budget airline easyJet was ahead after revealing a 20% boost in passenger numbers last month. The carrier's load factor also improved to 87.3% from 84.4%, helping shares up 8.25p to 383p.
The four biggest risers were Eurasian Natural Resources up 90p at 1100p, Kazakhmys ahead 106p at 1697p, Vedanta Resources up 106p at 2287p and Antofagasta up 32p at 781p.
The Footsie's biggest fallers were HBOS down 13p at 560p, Persimmon down 13p at 706p, Alliance & Leicester down 8.5p at 525.5p and Land Securities down 22p at 1522p.
