FTSE stabalises after recent uncertainty

The London market regained its composure today after positive results from the advertising and banking sectors pushed the FTSE 100 Index above 5000.

Higher oil costs have unsettled shares in recent sessions, although the mood was brighter by mid-morning after a hectic week for corporate results ended on a bright note and amid a slight easing in the price of New York crude.

With advertising giant WPP and banking group Alliance & Leicester both posting results at the top end of expectations, the FTSE 100 Index moved as high as 5010 before settling back to stand 28.4 points stronger at 5000.5.

The rally was expected by analysts who had seen American shares advance as the high oil prices whipped up demand for major crude producers and semiconductor stocks were snapped up on talk of an imminent broker upgrade.

The Dow Jones Industrial Average closed 75 points higher overnight, while all major markets in the Far East were in the black today.

In London, mining stocks were driving the Footsie forward with BHP Billiton up 18.5p at 756p and Rio Tinto 42p stronger at 1808p.

WPP was among other risers – up 12p at 597.5p – after reporting a 15% rise in annual profits and offering a positive assessment of its prospects this year.

Alliance & Leicester failed to hold on to early gains achieved after it talked of further growth for its core markets this year and unveiled a 16% hike in pre-tax profits.

Shares in A&L initially rose 9p but were later down 1% or 10.5p to 880p. HSBC, which posts annual results on Monday, gained 8.5p to 894.5p while Lloyds TSB was 1.75p higher at 491.75p.

Elsewhere, leisure group Rank fell 15.75p to 269p as falling annual profits and a proposed separation of its Deluxe unit weakened sentiment.