Shares upbeat as HSBC boosts

FootsieLONDON shares ended the week on a positive note today as HSBC helped to push the FTSE 100 Index further away from the 4000 barrier.

The City's fourth-biggest stock rose 7% as investors re-appraised yesterday's £9 billion purchase of US credit firm Household International.

Oil giants BP and Shell also moved higher while battered telecoms group Cable & Wireless finally recovered some ground, albeit a rise of just 1.25p.

And after being on the front foot for all of the session, the FTSE 100 closed ahead 38.5 points at 4091.6 a gain of 1.4%.

But Martin Dobson, head dealer at NatWest Stockbrokers, said most investors spent the day on the sidelines with hedge funds dominating trading.

He added: "It feels as if we are stuck in a rut at the moment, there's not any momentum behind the market."

A subdued start on Wall Street, where the Dow Jones Industrial Average drifted despite positive US consumer sentiment figures, did little to help spirits.

HSBC's gain, of 48.5p to 728p, wiped out falls yesterday caused by fears the Household deal would dilute the value of its shares.

Investors yesterday focused on the strategic merits of the move, with stockbroker Merrill Lynch helping out by upgrading the stock to neutral from sell.

But it was a different story elsewhere in the banking sector, with Lloyds TSB falling 22.5p to 507.5p on fears the group may cut its dividend.