FTSE close: Hammerson, ENRC, RBS up
The Footsie jumped 2.3% today after markets on Wall Street and Asia overnight shrugged off fears over Dubai's debt problems.
The FTSE 100 index closed a hefty 121.5 points higher at 5,312.2 after a nervy day's trading yesterday as investors tried to digest the implications for the world financial system of Dubai World's request for a debt standstill.
Overnight Dubai World unveiled plans to restructure about $26bn in debt out of the estimated $59bn it owes, reassuring investors that the Emirate's debt problems can be contained.
The Dow Jones helped the Footsie along with a 124.4 points rise to 10,469.2 by the London close.
'The concerns about Dubai was a wobble, but we now seem quiet happy that the problems are contained and manageable, so its onwards and upwards as investor risk appetite returns thanks to a weaker dollar,' said David Morr
'We've had a bit of a set-back, but it's been dealt with pretty well, with no sense of panic. People have rationalised it and as long as there are no more revelation we look to be recovering the ground lost last week.'
Miners were boosted by stronger commodity prices as the dollar weakened, with investors reversing moves into the safety of the US currency made on Dubai concerns.
Xstrata was up 67p at 1136p, Anglo American 104p higher at 2707p and Rio Tinto 112p stronger at 3200p.
But a Credit Suisse upgrade to 'outperform' helped Eurasian Natural Resources beat its Footsie rivals to the top riser spot, with a jump of 37.5p to 899p.
There was soothing news from Fitch Ratings after the agency said the ratings of major UK banks were not expected to be affected by their exposures to the Middle East.
Royal Bank of Scotland and the London Stock Exchange, which have both been hit by fears over their exposure to Dubai, recouped some of their recent losses, rising 1.09p to 34.27p and 12.5p to 765p respectively. Standard Chartered also rallied 77p to 1,561p for similar reasons. HSBC rose 2.69%, or 19p to 726p.
TUI Travel was one of only two fallers in the whole index. It shed 2.6p to 243.3p after its in-line full-year results failed to live up to high market expectations, after a strong run by the stock ahead of the numbers. Thomas Cook eased 0.3p to 211.7p.
Property companies were also in favour after Morgan Stanley said the market under valued leading firm Hammerson's UK development prospects. Hammerson rose 19p to 419.7p, while Liberty International added 18.1p to 483.6p and Segro added 11.5p to 337p.
Cable & Wireless took on 2.3p to 144.2p as ING upped its rating for the telecoms carrier to 'buy' from 'hold'.
Outside the top flight, housebuilders were in positive territory after the Nationwide said house prices rose for the seventh month in a row during November. Charles Church owner Persimmon lifted 45.8p to 459.4p, while Barratt Developments added 8.1p to 126.3p and Bovis Homes cheered 23.5p to 413.3p.
Brewer and pubs chain Greene King was another strong riser in the FTSE 250 Index after posting a 3% rise in half-year profits. It also told investors that it was confident of further progress in the second half, causing shares to rise 4.66% or 18.7p to 420p.
Rival firm Mitchells & Butlers was another riser, up 3.6% or 9.1p to 261.6p, as it defied its biggest shareholder by announcing the appointment of senior director Simon Laffin as chairman.
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