ROYAL Bank of Scotland was the biggest riser in the top flight yesterday as its shares continued to recover from last week’s lows.
While financial stocks generally benefitted from talk that the European Commission will unveil its proposals for a banking union in September, RBS also received some help from reports that it could get a good price for its US retail bank, Citizens.
Its shares jumped 6 per cent to 228.8p, while Barclays added 3.4 per cent to 177.2p.
With the holiday season under way, the FTSE 100 index built on Friday’s gains despite low volumes, up 21.5 points at 5,808.8.
Ben Critchley, a sales trader at IG Index, said: “The FTSE has patiently added to its gains throughout the day, pushing back above the 5,800 level for the first time since the beginning of May, as better US jobs data and the hope of eurozone action at some point in the near future keeps optimism in plentiful supply.”
In a quiet session for corporate news, shares in utility firms were lower after former Ofwat chief Sir Ian Byatt called for a price cap to keep hikes in water bills at inflation or below.
He said water regulation needs to move away from its focus on improving quality and concentrate instead on price. Severn Trent fell 20p to 1,718p and South West Water owner Pennon was 11p lower at 757p.
But with UK car sales showing their biggest rise in two years, vehicle parts maker GKN gained 5.8p to close at 216.4p.
NEW YORK: Stocks extended last week’s rally, hitting fresh three-month highs, as borrowing costs fell in Spain and Italy in expectation of more European Central Bank assistance for the troubled eurozone.
During the session, the broad-based S&P 500 index reached its highest point since early May, near the 1,400 points level.