Buoyant banks helped the FTSE 100 Index return to winning ways today as the blue-chip index rose 35.3 points to 6,723.1.
The UK’s part-nationalised banks led the charge amid further signs they are moving closer to shedding government support.
Shares in 39% state-owned Lloyds Banking Group rose above the 61.2p level at which the UK Government would break even on its 2008 bailout, and are now at their highest point for more than two years.
The Treasury is widely expected to begin selling its stakes in Lloyds and 81%-nationalised Royal Bank of Scotland before the 2015 general election.
Lloyds shares closed up 3.2% or 1.9p at 62.8p, while RBS was up 18p at 336.8p, a 4% gain.
In other corporate news, Morrisons’ long-awaited entry into online grocery shopping also caused excitement after a big jump in shares of distribution partner Ocado.
Morrisons was 3.9p higher at 286.5p after the announcement that it will start internet food deliveries by the end of this year. Ocado’s shares closed at 274.1p, a gain of 36% or 72.2p.
At the other end of the FTSE 250 Index, newspaper distribution and airport ground handling firm John Menzies slipped as much as 5% after it issued a disappointing trading update. Shares were down 29.5p at £7.62.
The biggest risers on the FTSE 100 included Resolution up 11.4p to 296.8p and GKN 9.3p ahead to 305.8p.
The biggest fallers on the FTSE 100 were Eurasian Natural Resources, 23.7p down at 271.6p, Randgold Resources off £1.45 at £47.57, Weir Group 71p lower to £23.99 and Amec off 28p at £10.44.
Carrie Keenan, of investment manager and financial planning specialist Brewin Dolphin in Aberdeen, noted that Faroe Petroleum closed in positive territory, adding 2.65% to 115.25p.
Scottish fallers included Optos which lost a further 8.26% at £1.24.
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