FTSE close: Index surges 104 points
The Footsie made a bullish start to the trading week today as mining stocks led the market higher.
The widespread gains for the heavyweight sector came after gold prices hit another new record, while a strong opening on Wall Street consolidated the gains in London.
The FTSE 100 index was 104.09 points higher at 5,355.5, with only a handful of stocks in negative territory. The Dow Jones industrial avergage opening 129.9 points up at 10,448.15.
'We're seeing a couple of days of weakness being reversed and there may be a bit of bargain hunting as those who missed the rally since March look to get into equities,' said Richard Hunter, head of equities at Hargreaves Lansdown.
The FTSE 100 is up 20.5% this year, and has soared more than 50% since touching a six-year trough in March.
Another factor lifting the market was the Business Confidence Monitor, compiled by the Institute of Chartered Accountants (ICAEW), which climbed to 24.6 for the fourth quarter, up from 4.8 in the third quarter. This is the highest reading since the series began in 2003 and will fuel expectations that the economy grew between October and December after the longest recession on record.
'I find this a remarkable statistic, implying the economy is improving beyond most people's wildest dreams,' said David Buik of BGC Partners.
The mining sector accounted for nine of the Footsie's top 10 risers as gold powered to a record above $1,160 an ounce, lifted by a retreating dollar, which also promoted a sharp rise in copper prices.
Eurasian Natural Resources jumped 26p to 883p, and Lonmin rose 67p to 1,760p, while gold miner Randgold Resources jumped 170p to 5,120p.
Hopes of a bidding war for Cadbury also helped the Dairy Milk maker advance. The chocolate giant ticked up again to reach its highest level this year - up 13.5p to 814p - after weekend reports fuelled expectations that Kraft's hostile offer could be trumped by fellow US firm Hershey.
Banking giant Barclays was also the leading performer on a good day for the sector amid reports it had restarted talks over selling its private equity unit. The shares added 10.25p to 314.5p.
Lloyds Banking Group meanwhile was on the front foot, adding 3.32p to 91.47p. The bank gained strong support for its debt-swapping plans and investors are awaiting tomorrow's announcement of pricing details on its up-coming £13.5bn rights issue.
B&Q owner Kingfisher was one of the few non-miners at the top of the charts after Credit Suisse raised its target price for the firm ahead of its third quarter results. Shares were up 5.3p at 243.6p.
In the FTSE 250, broadcaster ITV was 1.65p ahead to 53.9p after more speculation that new chairman Archie Norman was considering charging for some channels as well as a board clear-out after its recent mishandling of top-level appointments.
Fellow second tier stock Northumbrian Water was up 6p at 250p as investors warmed to higher pre-tax profits. But the firm had fallen in earlier trade after it said it continued to be affected by rising business failures in the North-East.
Transport group National Express was a faller in the second tier, sinking 4.8p to 362.1p although the company's biggest shareholder, Spain's Cosmen family, raised its stake in the firm to 19.5%.
Mid-cap explorer Heritage Oil lost 23.8p to 483.7p after it said it had agreed to sell its Ugandan interests to Italy's Eni for up to $1.5bn.
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