Rising oil prices and optimism that Greece will be saved from a calamitous default helped drive London’s leading shares index closer to the 6,000 mark today.
The rising price of oil helped heavyweight BP’s shares to push through the 500p barrier for the first time since last January at one stage before it closed 10.3p higher at 499.3p. The wider FTSE 100 Index was up 40.2 points at 5,945.3, its highest close for seven months.
A surprise easing in monetary policy by China’s central bank boosted miners and other commodities-driven firms after the move in Beijing raised hopes for a pick-up in industrial demand.
Weir Group, which makes pumps for the oil sector, was the biggest riser, up 7%, or 135p to £21.86, while miner Vedanta Resources was 46p higher at £13.58.
Sentiment also continued to improve towards Royal Bank of Scotland, which was among the biggest risers, up 0.9p to 28.5p, while Lloyds Banking Group was up 0.9p to 36.3p.
In a quiet session for corporate news, JJB Sports jumped 15% after it offered beleaguered investors a glimmer of hope in its survival battle. Shares rose 1.5p to 11.5p.
The biggest Footsie risers included Aviva up 12.6p at 382.6p, while the biggest Footsie fallers were Shire down 26p at £22.52, Tate & Lyle off 6.5p at 701p, Imperial Tobacco down 19p at £25, and Severn Trent off 11p at £15.40.
Steven McKay, of investment manager and financial planning specialist Brewin Dolphin in Aberdeen noted that the day’s risers included Stagecoach, up 2.8% to 272.3p.
Amongst the limited fallers were Royal Dutch Shell which lost 0.4% to 2,317.5p and Aberdeen Asset Management which closed 0.8% lower at 260.65p.