The FTSE 100 made steady gains today as global markets resumed their rally after minutes of the US Federal Reserve’s most recent meeting eased fears of an imminent tapering of monetary stimulus.
The blue-chip index closed 38.5 points higher at 6,543.4 as a report revealed many Fed officials wanted to see additional signs of improvement in the US labour market before the world’s biggest economy slowed bond purchases.
Security giants G4S and Serco suffered heavy share falls however, after a review found the firms had overcharged the UK Government by tens of millions of pounds for running electronic criminal tagging schemes.
G4S’ shares fell 12.6p to £2.13 in the wake of the scandal, while Serco dropped 54p to 626.5p.
Mining stocks were among the beneficiaries of the wider market rally, with Fresnillo up 114.5p to £10.18.
Sentiment was also boosted by a string of positive trading updates. Associated British Foods jumped 5% or 92p to £19.07 after it reported a return to form for its Primark retail division, with total sales up 20% in the 16 weeks to June 22.
Outside the top flight, Balfour Beatty defied tough construction markets with growing sales in the US and improving profitability in the UK, lifting its shares 6.2p higher to 225.7p.
The biggest FTSE 100 risers included Randgold Resources £2.97 ahead at £44.02 and Anglo American up 69p to £13.37.
Among the biggest FTSE 100 fallers were TUI Travel 5.6p lower at 370.8p and Meggitt down 7p at £5.55.
Stuart Lamont, of investment manager and financial planning specialist Brewin Dolphin in Aberdeen, noted Amec rose 2.41% to £10.62, Hunting added 2.29% to 846.75p and Aberdeen Asset Management moved 2.23% higher to close at 407.4p.
On the fallers board, Parkmead fell 8.93% to end the day at 12.5p, BP slipped 1% to 464.75p and Standard Life declined 0.63% to £3.79.
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