FTSE close: Lloyds, RBS down despite 91-pt surge
The Footsie made up some the losses it suffered late last week as a strong oil price drove energy stocks higher and took the index to a new 2009 high.
The FTSE 100 closed 91.3 points higher at 5,281.54, a new high for 2009, driven by energy stocks as crude prices hit a one-year high of $78.5 in trading today.
The index was also boosted by a strong opening on the Dow Jones Industrial Average on Wall Street ahead of figures from technology giants Apple and Texas Instruments.
The Dow was 106.1 points higher at 10,102 with investors determined to make the most of renewed confidence in worldwide economic recovery.
David Buik, analyst at BGC Partners, noted an 'astonishing rally' . He said BP's rise today accounted for 11.5 points of the Footsie's increase while HSBC was credited with 10 points: 'These are extraordinary times we live in. Valuations seem to have little meaning.'
Equity markets retreated on Friday after results from Bank of America and General Electric failed to live up to raised expectations after results from JPMorgan earlier in the week, but optimism remains that there will be further positive surprises.
The blue-chip index is up 18.7% this year and has surged 52% since touching a six-year trough in March, but is still 2.9% below its level when Lehman Brothers collapsed last September. 'Earnings are likely to beat expectations because expectations have been driven down over the previous nine months and against a relatively easy comparative last year,' said Jeremy Batstone-Carr, analyst at Charles Stanley.
Also pointing to a slightly improved outlook for the British economy, property website Rightmove said asking prices in England and Wales registered their first annual rise in more than a year in October, buoyed by a dearth of properties coming on to the market.
With the price of crude oil continuing to tick higher, Royal Dutch Shell gained 51.5p to 1,857.5p and Tullow Oil was 9p higher at 1,245p. BP was the big winner with a 15.1p rise to 574.2.
Miners tracked metal prices higher: Anglo American was 104.5p higher at 2,304p, Kazakhmys was 43p stronger at 1,301p and Fresnillo 25p ahead at 848p.
The improved confidence also meant property firms were higher, with British Land up 19.1p at 492p and Liberty International 8.5p higher 520p.
But taxpayer-subsidised banks Lloyds Banking Group and Royal Bank of Scotland were the top two FTSE 100 fallers, down 1.1p to 92p and 0.08p to 46.9p respectively, as cash call worries persisted for them.
In a quiet session for blue-chip corporate news, shares in Standard Life were 2.1p higher at 232.05p after it announced the appointment of finance director David Nish as successor to chief executive Sir Sandy Crombie.
Rival insurer Aviva moved in the opposite direction, down 6.8p to 443.5p, as it revealed details of its plan to raise up to £1.1bn through the listing of its 42% stake in Dutch subsidiary Delta Lloyd.
Telecoms firm Cable & Wireless was also a faller, down 0.3p to 138.8p after Citigroup cut its rating on the stock to 'hold' from 'buy'.
Among the mid-caps, bus and rail group National Express shares jumped 10%, or 38p to 400p, after Stagecoach confirmed it approached its rival about a possible merger in a deal which was valued by the Sunday Telegraph at £1.65bn. Stagecoach fell 0.1p to 157p.
One of the biggest rises in the FTSE 250 came from William Hill after it said its retail arm remained on track to meet expectations, despite poor football results at the start of the season. Shares rose 11% or 16.5p to 177.6p as the company said punters were recycling their winnings.
Ladbrokes, which issued a profits warning earlier this month, added 5% or 6.5p to 140.7p.
Elsewhere, home shopping retailer Flying Brands rose 1p to 82.5p as it assured over the third quarter and said its Gardening Direct autumn campaign - seen as key to the second half performance - was trading in line with expectations.
The pound appears to have made mini-recovery against the euro and dollar recently, trading this morning at 1.090 and 1.628 respectively.
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