Stock market close: iShares boost for Barclays
The London market was in positive territory today after the Bank of England kept interest rates at 0.5% and the mining and banking sectors both rallied.
The Bank's monthly announcement was met with relief in the City, given that there was no change in borrowing costs or the scale of the quantitative easing operation launched by policymakers last month.
With little happening in the corporate arena, the FTSE 100 index moved towards the four-day weekend with a gain of 58.19 points at 3983.71. The performance at lunchtime represented a decent turnaround after the top flight spent much of the morning in negative territory.
Shares in Barclays rallied 10% after it announced the £3bn sale of its iShares arm.
The potential balance sheet boost caused shares to rise 19.7p to 177½p during a strong session for the sector as Royal Bank of Scotland cheered 2.9p to 29p and Lloyds Banking Group rose 7.8p to 79½p. HSBC was 37p higher at 474p.
Miners also made progress after Vedanta Resources reported an increase in production for the fourth quarter. Vedanta leapt on the risers board with a gain of 13% or 100½p to 873½p, while Xstrata added 48½p to 572½p and Kazakhmys lifted 39¾p to 466p.
In a quiet session for corporate news, recruitment firm Hays spooked investors by announcing a 37% drop in net fees from UK and Ireland.
Panmure Gordon stockbrokers responded by slashing its earnings per share estimate for next year by 29% in the wake of the third quarter update. Shares fell 4% at one stage but later recovered their poise and managed a ¾p climb to 74¾p.
Software firm Misys rose 12% in the FTSE 250 Index after it reported growth in its banking arm, despite the recent turmoil in the sector. Shares were 13½p higher at 129¼p.
Meanwhile, housebuilders continued to strengthen after a recent spate of positive broker notes on the sector. Barratt Developments was 19% or 23¾p higher at 152p, while Taylor Wimpey cheered 4¼p to 47¼p and Redrow gained 14p to 205p.
Pub chains were also in favour with investors, with Punch Taverns ahead 23% or 17p at 90½p and Enterprise Inns ahead 18% or 15¼p to 98p. Shares in Enterprise had been below 50p at the start of last month.
Elsewhere in the sector, Mitchells & Butlers rose 12% or 31¼p to 287½p.
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