FTSE rockets to hit two year high

The FTSE 100 Index hit its highest level in more than two years today before closing just points lower.

After a bumper day for mining and oil stocks, the Footsie ended up 34.5 points higher at 4591.

Earlier in the day it had broken through the key 4600 barrier and hit its highest level since July 2002.

Analysts said the move above 4600 had been unsustainable as many traders booked profits ahead of the weekend.

The Footsie gained momentum from across the Atlantic, where the Dow Jones Industrial Average was around 40 points higher by closing time in London.

In London, mining groups occupied many of the top spots on the Footsie risers board with BHP Billiton advancing 18.75p at 556.25p, Anglo-American up 33p at 1296p, and Rio Tinto ahead 38p at 1448p.

But the big news of the day came from FTSE 250 food retailer Big Food Group which announced a takeover approach in the region of 110p a share.

The news encouraged investors to stock up on shares in rival supermarkets with Morrisons cheering 3.25p to 202.25p, although Sainsbury’s remained unchanged at 278p after earlier gains.

Tesco was also ahead by 3p at 275.75p, although the group played down claims that it was about to launch a major foray into the mortgage lending market.

Rolls-Royce was 4.5p stronger at 251p on news that it is to carry out maintenance on engines in Air New Zealand planes in a deal worth around 500 million US dollars (£279m).

Oil and gas explorer Tullow Oil lost 0.75p to 130.75p despite saying it had won nine licences to drill for North Sea oil and gas.

The biggest risers in the Footise today were BHP Billiton up 18.75p to 556.25p, Hilton adding 9.5p to 282.5p, Smith & Nephew up 16p to 496p and Rio Tinto adding 38p to 1448p.

The heaviest fallers were Cable & Wireless off 3p to 107p, Bradford & Bingley falling 3.75p to 288.25p, Schroders off 6.5p to 654p and mmO2 falling 0.75p to 94p.