FTSE 100 close: Market races towards 5000
The FTSE 100 raced towards the 5000 mark, closing at 4850 as the bulls snorted again.
Ongoing strength in the price of crude propped up oil stocks again today and kept the Footsie in positive territory.
The Nikkei and Hang Seng were both lower overnight as markets again questioned whether the recent strong run for shares had gone too far.
The doubts pushed the Footsie lower in early trading but the top flight then steadied to rise 94.3 points higher at 4,850.9 by the close, having powered past the 4,800 barrier before lunch.
Energy giants BP and Royal Dutch Shell helped to prop up the index after oil prices climbed to $73 a barrel, leaving the pair 10.8p higher at 527.8p and 51.5p stronger at 1,666p respectively.
Banks were in the main higher, with the sector buoyed by gains in heavyweight HSBC, up 13.3p to 659.1p, while Lloyds Banking Group and Standard Chartered added 0.33p and 38p, respectively.
Other notable gainer was British Airways, which lifted 12.7p to 188.2p, and several insurance groups boosted by positive outlook reported by US giant AIG across the pond.
Prudential lifted 10.5p to 532.5p, and Aviva, Admiral and Legal and General all gained. Aviva extended the voting for policyholders' reattribution process today, and its shares jumped 21.4p to 410.7p.
Meanwhile, investors were expecting good news when motor insurance firm Admiral reports interims next week, and the shares added 29p to 1079p.
Legal & General rose 5.56%, or 4.1p to 77.8p, and as it headed towards a satisfying conclusion to the week.
In the FTSE 250, Rightmove shares jumped 80.1p to 508.5p after the property website says it is confident 2009 underlying operating profit will exceed current market expectations, as it posts better than expected first-half results.
It also revealed half-year profits of £18.2m and said its site saw the most visitors in its nine-year history on 10 August, stressing a positive outlook for property.
Brokers including WH Ireland, Numis and Panmure Gordon say they will revise estimates for 2009 and 2010 after Friday's statement, with Numis raising its recommendation on the stock to 'buy' from 'add'.
Shares in software firm Sage led the FTSE 100 fallers with a 4.6p fall to 220.3p after its US rival Intuit said that 2010 earnings will be below analysts' estimates and that tight economic conditions will prevail for at least another year.
Sage competes with Intuit in the United States to sell accounting software to small businesses.
'We caution that Intuit's competitive overlap with Sage's US business is perhaps only 10-15%. However, it is important to sentiment and its 4% fall after hours may impact Sage negatively today,' UBS analyst Michael Briest says.
Sage shares have risen 24% in the past month.
WPP Group fell back as well, down 3p to 504.5p, having seen strong gains late on Thursday which traders attributed to a short-squeeze ahead of the adverting firm's results, due next week.
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