Financial gains boost FTSE

Gains by financial stocks boosted the London market today as traders shrugged off negative momentum from across the Atlantic.

Better-than-expected UK employment figures also helped lift the FTSE 100 Index 5.4 points higher to 4728.2.

Official data released today showed another fall in unemployment, fewer people claiming Job Seekers’ Allowance and the number of men and women in work reaching a new record.

However, the Dow Jones Industrial Average prevented the Footsie holding on to more significant gains seen earlier in the session. The index stood 20 points lower by the end of the day in London.

In London, HBOS was at the top of the Footsie risers, up 3% or 23.5p to 829.5p after Goldman Sachs raised its target price and Lehman Brothers said it preferred the stock to Lloyds TSB.

However, that failed to deter investors in Lloyds, which also saw its stock pick up 3% or 12p to 455.75p, making it the second highest climber.

Vodafone was also among the risers as it recovered from yesterday’s losses, prompted by a report that its US ally Verizon was considering an offer for a key rival. Shares lifted 2.25p to 141.75p.

Confectionery group Cadbury Schweppes rose slightly – up 1.25p to 465.25p – as it stuck by its financial goals despite a likely fall in profits at its European drinks business.

China maker Royal Doulton cheered 15% – up 1.5p to 11.62p – after Waterford Wedgwood announced the terms of an agreed takeover.

The highest climbers in the Footsie today were HBOS up 23.5p to 829.5p, Lloyds TSB rising 12p to 455.75p, Hanson up 10.5p to 425p and Gallaher rising 16p to 762p.

The heaviest fallers were Smith & Nephew down 24p to 528.5p, Antofagasta falling 24p to 1064p, Kingfisher down 5.5p to 300.5p and Pearson falling 11p to 606p.