A LATE rally helped the FTSE 100 index to a four-month high yesterday as London took its lead from traders across the Atlantic.
Resurgent oil and mining stocks helped push the top tier 32.5 points higher to 5,841.2 despite the drag created by Standard Chartered’s woes.
Ishaq Siddiqi, market strategist at ETX capital, said: “European financial markets perked up a touch in the latter half of the session, with strong gains on Wall Street offering some direction.”
Standard Chartered shares ended the day 16 per cent lower at 1,228.5p, but the stock had shed a quarter of its value at one stage after it was accused of hiding $250 billion (£160bn) of transactions with Iran. Its shares had already fallen 6 per cent on Monday.
Holiday Inn operator InterContinental Hotels was one of the biggest risers in the top flight after it announced plans to return $1bn to shareholders due to the sale of its Barclay hotel in New York. With a 6 per cent rise in half-year operating profits also beating market expectations, shares jumped 7 per cent or 103p to 1,725p.
A rise in oil prices following last week’s better-than-expected US jobs report meant BP was lifted 3 per cent, or 12.8p, to 453.8p, and Shell added 42p to close at 2,366.5p.
Xstrata’s share price received a boost after the miner announced better-than-expected results for the first half of 2012. Its shares were up 13.9p to 896.9p and also boosted prospective merger partner Glencore, which added 7.8p to 336.6p.
Drinks giant Diageo made gains after broker Investec upped its target price for the shares from 1,700p to 1,900p. The stock was 17.5p higher at 1716.5p despite Investec adding that it was a buyer “at reduced conviction” due to its strong rally Diageo’s shares have already enjoyed in recent months.
NEW YORK: Stocks extended their gains yesterday, with market-makers emboldened by expectations the European Central Bank will act soon to combat the eurozone’s debt crisis.
Adding to the bullish tone was word that while many companies missed revenue targets, their earnings per share performance pleased investors.
In late trade, the Dow Jones Industrial Average was up 77.65 points at 13,195.16.