Positive news lifts Footsie to two-month high

THE FTSE 100 Index achieved its highest close for two months yesterday after a rush of positive news provided investors with cause for cheer.

Hopes for a strong end to the year in London were raised as banking, media, telecoms and retail stocks pushed the Footsie up 95.1 points to 4190.

The blue-chip index last closed above 4200 in early September and analysts said the strength yesterday showed a breakthrough may be on the cards.

A strong start in London had been forecast the moment Wall Street closed on Wednesday night with the Dow Jones Industrial Average better off to the tune of 148 points.

In London there was an improvement across the board, helped by buoyant retail sales numbers and news that GUS had bought Homebase for £900 million.

Shares in Argos retailer GUS rose 6%, or 35p to 622p, as analysts applauded the buy and half-year results showing a 20% jump in underlying profits.

Marks & Spencer climbed 4p to 348.75p, Next rose 11p to 824p and among other grocers Tesco edged up 1.5p to 201.75p while Sainsbury’s rose 6.25p to 297.75p.

The biggest Footsie risers were Corus Group up 2.75p at 29.25p, WPP Group ahead 44p at 497p, Amvescap up 40.5p at 459.75p, Royal & Sun Alliance ahead 11p at 128p.

The biggest fallers were Brambles down 66.75p at 129.75p, SABmiller off 15.5p at 440p, BAT down 15p at 627p, Xstrata off 12p at 603.5p.