FTSE stays above 5200 level

The FTSE 100 Index finished today back above the 5200 level as investors adopted a defiant mood after yesterday’s London bombings.

The Footsie more than made up the ground lost after the terrorist attacks, ending the session 73.9 points ahead at 5232.2. The index lost 71.4 points yesterday after finishing Wednesday at 5229.6.

Many of the stocks that took a hammering at the hands of nervous investors yesterday recovered their losses, including British Airways, cruise operator Carnival and airport operator BAA.

A rise in the cost of a barrel of oil beyond the 61 US dollars mark in New York today added to the gains, lifting BP more than 3% or 20p to 641.5p.

Oil prices rose amid concerns that Hurricane Dennis will disrupt petroleum shipments and output in the Gulf of Mexico, which supplies at least a quarter of US oil.

The Dow Jones Industrial Average had climbed 91 points shortly after London’s close as a government report showing jobs growth indicated that the US economy is expanding at a pace that will lift profits without sparking inflation. Unemployment fell to its lowest since the September 2001 terrorist attacks.

News of a successful stock market debut for French gas giant Gaz de France (GdF) also contributed to the defiant mood as it boosted European stock markets.

Transport and aerospace-related stocks recovered ground lost in the wake of yesterday’s attacks.

British Airways advanced 5.5p to 266.25p as investors took a less pessimistic view of the impact of the terror attacks on the travel industry. This was also reflected in shares of BAA, which rose 11p to 610p, Carnival up 76p to 3235p and Rolls-Royce, which lifted 9.25p to 301.5p.

Only four stocks were in negative territory including drinks giant Diageo off 5p to 800p and sugar specialist Tate & Lyle down 9.5p at 454p.

Corporate news was thin on the ground in the top flight, but discount clothing retailer Peacock was in focus in the lower tiers.

Peacock lifted 1% or 3p to 261p after it told investors that its new financial year had begun solidly, helped by a drive to stock more fashionable womenswear at its core high street chain.

Supermarket group Somerfield cheered 6p to 196p following a report that Iceland-based retail investment group Baugur was close to withdrawing from a consortium involved in the bid battle for the group.

Vaccine maker Acambis advanced 4p to 237p as it quashed speculation it was close to making a company-transforming acquisition.

But market information group Taylor Nelson Sofres was heading in the opposite direction after reporting weaker demand among its businesses offering tailor-made research for customers. TNS shares weakened 12.25p to 204.5p.

Biggest winners were Smiths Group up 31.5p to 958.5p, BP gaining 20p to 641.5p, Rolls-Royce lifting 9.25p to 301.5p and Exel advancing 26.5p to 865p.

Biggest losers were Tate & Lyle off 9.5p to 454p, Diageo shedding 5p to 800p, Hilton Group receding 0.5p to 287.75p and Severn Trent falling a penny to 978p.