Further encouraging signs from the US economy and relief at a successful Greek bond swap gave investors a strong end to the week.
The FTSE 100 Index, which has endured a rollercoaster week because of the uncertainty over Greece, closed 0.5% higher today – up 27.8 points at 5,887.5.
Greece paved the way for a second massive bailout after it persuaded the vast majority of its private creditors to sign up to the biggest national debt writedown in history.
The improvement in the FTSE 100 failed to translate into gains for the banking sector, with Barclays flat at 240.7p and Royal Bank of Scotland off 0.1p at 26.2p.
Lloyds Banking Group was unchanged at 34.35p after Barclays Capital lowered its earnings forecast for 2012. There was also further speculation that Co-op’s attempt to buy 630 branches from Lloyds will be delayed because of pressure from the regulator for the mutual to overhaul its board.
One of the biggest gains in the top flight came from Scottish temporary power specialist Aggreko, which lifted 4% or 88p to £23.13 after its full-year trading profits jumped 26%.
Other big risers included Intertek ahead 65p at £24.50, Cairn Energy up 7.3p at 331.6p and Land Securities ahead 15.5p at 716.5p.
ITV gained 0.5p to 87.15p as sentiment towards the broadcaster’s turnaround plan continued to improve.
The Footsie’s biggest fallers were International Airlines Group down 4.2p at 160.8p, Man Group off 2p at 139.8p, Fresnillo down 23p at £18.01 and BAE Systems off 3.1p at £3.11.
Much of the attention of the session was outside the top flight, with London Stock Exchange more than 6% higher, up 57p at £9.55, after it sealed a deal to take control of up to 60% of clearing house LCH.Clearnet.
A warning from pubs chain JD Wetherspoon that it was “slightly more cautious” about trading for the current financial year failed to derail its share price, which rose 1.4p to £4.05.
Punch Taverns produced a similar update, leaving Wetherspoon’s leasehold rival unchanged at 11.25p.
Stuart Lamont, of investment manager and financial planning specialist Brewin Dolphin in Aberdeen, noted Hunting consolidating yesterday’s gains with a further 8.1% rise to £9.26 and Parkmead Group up 6.3% to 20.1p. Stagecoach Group fell 1.1% to 263.1p and BG Group shed 0.6% to 1501.5p.