FTSE rallies to claw back some of week's losses

A much-needed rally by blue-chip stocks was not enough today to help the London market claw back losses sustained earlier in the week.

At the end of a busy few days for corporate news, the FTSE 100 Index closed 34.7 points higher at 5006.8, boosted by the likes of advertising giant WPP.

However, heavy losses suffered in previous sessions on the back of a rising oil price meant the damage had already been done and scuppered hopes the Footsie would notch up a fifth week of gains.

In London, mining stocks were driving the Footsie forward with BHP Billiton up 30.5p at 768p, Xstrata cheering 39p to 1084p and Rio Tinto 61p stronger at 1827p.

Oil majors were also doing well as the cold snap continued to stimulate demand for crude in the northern hemisphere. BP and Shell were up 12.5p and 6p to 568p and 488.5p, but were beaten by smaller rival Cairn Energy which advanced 4% or 45p to 1245p, making it second highest top flight climber.

WPP was among other risers – up 20.5p at 606p – after reporting a 15% rise in annual profits and offering a positive assessment of its prospects this year.

Alliance & Leicester finished in positive territory after it talked of further growth for its core markets and unveiled a 16% hike in pre-tax profits.

Shares in A&L cheered 1.5p to 892p. HSBC, which posts annual results on Monday, gained 7p to 893p but Lloyds TSB was 3.25p higher at 493.25p.

Marks & Spencer continued to fall as prospects of a takeover bid faded. Its shares were off 2% yesterday and dropped a further 2.75p to 357.75p today.

The biggest Footsie risers were BHP Billiton up 30.5p to 768p, Cairn Energy rising 45p to 1245p, Xstrata up 39p to 1084p and WPP rising 20.5p to 606p.

The heaviest fallers were AstraZeneca off 29p to 2087p, Centrica down 3.25p to 234p, mmO2 off 1.5p to 123.5p and Imperial Tobacco down 13p to 1385p.