Bargain-hunters scoop up stocks as Footsie surges

BARGAIN-HUNTERS seized on cheap stocks yesterday as the FTSE 100 Index surged almost 100 points during a rare upbeat session.

With the top-flight index falling in 12 of its last 13 trading days, investors raided some of the worst-hit sectors looking for value.

Insurance and financial stocks proved particularly attractive as the Footsie closed 94.9 points higher at 3578.7.

The improvement in the City built on the momentum established yesterday when the Footsie recovered from a near 100 point fall to close down just 6.2 points. Among the banks, Barclays was up 21.25p at 350p, Lloyds TSB rose 14.5p to 385p, Royal Bank of Scotland climbed 43p to 1343p and HBOS rose 18p to 556p.

Abbey National also climbed higher, up 17.5p to 402.5p. The stock has been hit recently by fears over the health of its Scottish Provident life assurance unit.

Prudential was up 18.25p at 375p, Aviva rose 16p to 389p, while battered FTSE 250 rival Britannic climbed 15p to 116p. And Vodafone was also making up ground, climbing 3.25p to 110p, while rival mmO2 was up 0.25p at 46.25p and BT Group moved 2% higher, up 3.25p at 170.5p.

The biggest Footsie risers were British Airways up 10.75p at 116p, Capita Group ahead 18.75p at 212.75p, Schroders up 37p at 458p and AstraZeneca ahead 156p at 2078p. The biggest fallers were BAE Systems down 6p at 112.25p, Bunzl off 2.75p at 345.75p, Next down 3.5p at 760p and BAT off 1p at 565p.