Technology stocks lead market revivals

The FTSE 100 Index ended the day at its highest close for more than a year today as stock markets on both sides of the Atlantic made solid gains.

After a steady start earlier in the day with positive economic figures lifting the mood, shares in London were boosted by a strong opening on Wall Street where hi-tech shares such as IBM took centre stage.

While gains in London were not quite as marked as those in New York, a 34.9 point gain was enough to carry the FTSE 100 Index to levels not seen since last August – closing at 4292.1.

The rally took the index to within eight points of the psychologically important 4300 mark.

Gains across the Atlantic were more marked, with the Dow Jones Industrial Average already up around 77 points as trading in London finished for the day.

Among the biggest gains in London were for mobile phones groups mmO2 and Vodafone – up 4% and 2% respectively.

Mark McCutcheon, head of dealing at stockbroker Gerrard, said investors were showing more willingness to put their money in shares.

But with some predicting that the Footsie could reach as high as 4600 by the end of the year, he was more cautious, saying it could reach between 4400 and 4500.