The FTSE 100 Index was buoyed by the prospect of further stimulus measures from the Bank of England today and hit a fresh five-year high.
The top flight bucked falls in Europe and on Wall Street to close up 16.3 points at 6,395.4 after the minutes of this month’s interest rate meeting revealed Bank governor Sir Mervyn King wanted to extend quantitative easing by another £25billion to £400billion.
The blue-chip index’s rise came despite a big disappointment for investors in RSA Insurance after the More Than owner slashed its full-year dividend payment by a third.
RSA shares dived 14% or 19.3p to 117p after the 33% cut in its annual dividend to 3.9p a share.
Drinks can maker Rexam topped the FTSE 100 risers board after posting higher profits, up 1% on an underlying basis to £418million, and boosting its dividend. Shares in the firm lifted 5% or 25.3p to 502p.
In the FTSE 250 Index, building supplies firm Travis Perkins upped its dividend by 25% and met City expectations with full-year profits of £313.3million.
However, analysts were more interested in a 5.1% fall in like-for-like sales for the first seven weeks of 2013, although the Wickes owner pointed to poor weather conditions and comparisons with strong trading a year earlier. Shares in the company were 37p lower at £12.71, a drop of 3%.
The biggest FTSE 100 risers included Melrose Industries 8.6p ahead at 251.3p, Royal Bank of Scotland 9p higher at 354.1p and British American Tobacco up 84p to £34.74.
Among the biggest FTSE 100 fallers were Aviva off 15.2p to 354p, Polymetal International 39.5p lower at 967.5p and Kazakhmys down 26p to 698p.
Stuart Lamont, of investment manager and financial planning specialist Brewin Dolphin in Aberdeen, noted Plexus was up 5.2% to 246.75p.
Among the fallers, Parkmead Group fell 2.6% to 14p, Optos shed 2.4% to 208p while Petrofac lost 0.7% to finish at £16.02.