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FTSE close: Land Securities up; BT Group down

By This Is Money
Updated: 08:35 EDT, 31 December 2009

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13:00:

After a subdued half day's trading the FTSE 100 index of the UK's top firms closed 2009, 15.02 points higher at 5,412.88 – up just over 22% on the year, representing its best annual performance since 1997.

The closing level also represents a 54% hike since hitting a six-year trough in March.

The year-end rally was driven chiefly by the banks and miners.

Lloyds Banking Group added 0.85p to 50.69p, Royal Bank of Scotland, 0.12p to 29.2p and Standard Chartered firmed 18p to 1,575p. For its part Barclays cheered 3.75p to 276p.

Miners recovered from falls seen on Wednesday, with Antofagasta and Fresnillo, the top risers, cheering 17.5p to 992p and 14p to 792p respectively.

'Everyone must be happy to see the index close without big losses coming in to the year-end. Investors must be feeling pleased with themselves,' said David Morrison, market strategist at GFT Global.

Better news from the property market helped give house builders and property firms a boost.

According to Nationwide UK house prices rose by 5.9% in 2009, making-up some of the recovery from the massive falls seen last year.

Among the blue-chips Land Securities finished as the day's top riser up 4%, or 28p to 685p, while Hammerson also firmed 4% or 16.2p at 424p.

FTSE 250 listed house builders also enjoyed gains with Bellway up 48p at 818p, Bovis Homes 22.8p better at 434.7p and Taylor Wimpey 0.7p up at 38.9p.

Back in the top flight, other big movers on the day included insurers Legal & General, up 2.75p to 80.6p and Standard Life, ahead by 7.3p at 216.5p.

The biggest fallers on the day were BT Group down 2.2p at 135p, Compass off 7p at 445.2p, United Utilities down 7.3p at 495.7p and Sage Group off 2.1p at 220p.

11:00:

The FTSE 100 pulled back to 5,404.27 but remains 6.41 points up.

The telecom sector was the biggest drag on the index with BT Group off 1.8p at 135.4p and Cable & Wireless down 1.1p at 140.2p, offsetting the rising higher banks and commodity stocks.

But at the doldrums of the index is Autonomy Corporation, down 13p to 1,498p.

Higher metals prices are keeping the miners at the top of the index with Antofagasta the day's best riser so far, up 17p to 991.5p with Johnson Matthey, just behind it with a 25p rise to 1,541p.

Buyers also arrived for food retailers on the hopes of sound post-Christmas sales ahead of updates from the sector in the coming weeks.

Wm Morrison is up 1.4p to 275.8p, Sainsbury, 2.8p better at 321.6p while Tesco is 2.95p up at 425.95p. Marks & Spencer however, is down 1p to 400p.

The trust behind US confectionery giant Hershey is preparing to meet next week to discuss launching a solo bid for British chocolate-maker Cadbury, which is down, 2.95p at 792.5p.

09.30:

The FTSE 100 index continued its rally today, headed towards its best annual performance since 1997.

The index was 20.79 points higher at 5,418.67, after closing down 39.75 points at 5,397.86 on Wednesday, breaking its five-session winning streak

'The Santa rally is supposed to be petering out, but it does not mean we're going to get a sudden downward correction,' said Howard Wheeldon, strategist at BGC Partners.

'Global economic figures in December have actually been a lot, lot better than many of us had feared and at the moment there don't seem to be indications that the heat has been turned off,' he said.

Banks added the most points to the index, recovering from recent falls, with Barclays up 2.35p to 274.6p, HSBC 4.4p better at 714.9p, Lloyds Banking Group 0.54p higher at 50.38p, Royal Bank of Scotland up 0.46p at 29.54p and Standard Chartered 12.5p dearer at 1,569.5p.

The Footsie is now 22% higher since the start of the year and more than 54% since hitting a six-year trough in March.

Commodity stocks, pressured on Wednesday, were also in demand. Royal Dutch Shell put on 11p to 1,889p, BG Group firmed 6p to 1,128p and BP added 2.4p to 603.8p as crude rose towards $80 a barrel.

Against a backdrop of firmer metals prices, Antofagasta, is up 18.5p to 993p while Fresnillo, is 3p better at 781p.

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