London’s blue-chip share index powered to its highest level for more than four years today as the US earnings season got off to an upbeat start.
The FTSE 100 Index closed up 45 points at 6,098.7 after gaining more than £11.4billion – a level not seen since May 2008.
Banking stocks led the charge after UBS upgraded Lloyds Banking Group from neutral to buy and raised its price target to 60p on the hope that rising margins, falling costs and lower provisions for bad debt will boost profitability.
Lloyds’ shares leapt 5%, up 2.5p to 53.4p, while Royal Bank of Scotland was up 12.9p to 349.9p and Barclays lifted 7.6p to 294.8p.
Aberdeen-based energy service firm Wood Group was also high on the risers’ board after shares lifted 24.5p to £7.74.
The biggest faller on the Footsie was retailer Sainsbury’s. Concern over sales growth overshadowed resilient trading in the key Christmas period and sent shares 3% into the red, down 9.8p to 329.2p.
Rivals Morrisons and Tesco, which reports its latest figures tomorrow, were dragged lower.
Morrisons fell 1.3p to 252p and Tesco slid 2.4p to 349.2p after experts said retailers would find it hard to grow profits over the coming year.
Outside the top flight, shares in Restaurant Group slipped 5%, or 18.2p to £3.64 despite it reporting a 4.5% rise in like-for-like sales in 2012 and forecasting results slightly ahead of expectations. Investors were concerned about price discounting.
Bakery chain Greggs slipped 2p to £4.49 after revealing a 2.9% fall in festive sales.
Fashion retailer Ted Baker was enjoying better fortunes after emerging as one of the winners of the Christmas trading season. Shares rose 7p to £10.41.
Elaine McLachlan, of investment manager and financial planning specialist Brewin Dolphin in Inverness, noted Xcite Energy gaining 11.6% to 105.5p, Celtic Football Club up 10.8% at 56.5p and Havelock Europa rising 9% to 13.9p.
FirstGroup was off 3.5% at £1.98, Plexus Holdings fell 2.9% to 247.8p and Johnston Press was down 2% to 12.3p.
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