Blue-chips sends Footsie off on a high festive note

BLUE-CHIP shares pushed ahead yesterday as a subdued session on the London market ended on a more festive note.

For most of the day the FTSE 100 Index was stuck in a narrow trading range as the City wound down for Christmas.

Low volumes and a dearth of corporate news dominated, and official figures showing the British economy had grown faster than first thought in the third-quarter had little impact.

Traders were also expecting Wall Street to fall when US markets opened.

But while the Dow Jones Industrial Average got off to a quiet start, it stayed in positive territory and that helped lift London.

Also buoying the market were strong gains in the heavyweight financial and oil sectors and by London’s close the FTSE 100 had pulled past the 3900 level, up 47.0 points at 3936.9.

Insurer Royal & Sun Alliance added 4.25p at 124.5p while among the banks, Royal Bank of Scotland rose 53p to 1500p, Barclays was 7p higher at 381.5p and Alliance & Leicester gained 9.5p to 748p.

But mortgage bank Abbey National, which today sold an aircraft leasing business to Eurotunnel, topped the FTSE 100 risers board with a 20p climb to 525.5p.

Among the oil giants, Shell surged 13.5p at 408.5p and rival BP gained 9.5p at 426p.

Both stocks have benefited in recent weeks as the threat of war in Iraq and the national strike in Venezuela bolstered the price of crude.