The London market kept its head above water yesterday on hopes that central banks globally are ready to act if this weekend’s election in Greece ultimately leads to the debt-laden country leaving the euro.
The FTSE 100 Index closed 11.8 points higher at 5,478.8 after reports that the US Federal Reserve, Bank of Japan and Bank of England were drawing up plans to cushion the blow of a Greek default.
Traders in London were also distracted from the threat of the eurozone crisis by a multibillion-pound lending scheme announced on Thursday to avert a second credit crunch.
Lloyds Banking Group and Royal Bank of Scotland were up by 5% and 8% respectively after the Bank of England and the Treasury revealed plans to lend to banks on the condition they pass it on in the form of cheaper loans.
RBS added 18.2p at 247.6p, Lloyds grew 1.6p at 31.3p and Barclays advanced 8.1p to 200.8p.
In corporate news, shares in pawnbroker Albemarle & Bond were lower after it reported a “marked slowdown” in activity at its gold buying business. Shares fell 1p to 275p.
BSkyB and BT shares continued to come under pressure over fears that the media giants overpaid in their £3billion Premier League deal. BSkyB shares dropped 1% or 9.5p to 661.5p while BT was 0.5p off at 201.2p.
The biggest Footsie risers included RBS up 18.2p at 247.6p, Polymetal International ahead 60.5p at 887.5p, Vedanta Resources up 57p at 960p and Evraz ahead 15.1p at 270.8p.
The biggest Footsie fallers were Aggreko down 94p at £20.66, Ashmore off 14p at 331p, Severn Trent down 60p at £17.36 and ARM Holdings off 14p at 331p.
Barry Shepherd, of investment manager and financial planning specialist Brewin Dolphin in Aberdeen, noted that the day’s risers included Faroe Petroleum, up 1.7% at 161.875p, AMEC gained 2.5% at 976.5p and Wood Group closed 4.6% higher at 711.25p.
Fallers included both Cairn Energy and Nautical Petroleum, off 3.3% at 270.75p and 1.5% at 461.25p respectively.