FTSE near four-year high

The FTSE 100 Index closed just short of a fresh four-year high today after a rally breathed new life into shares.

A bumper performance by mining stocks lifted the mood, while positive momentum from other European markets was another factor.

After soaring more than 70 points during the morning, the Footsie ended the day 38.9 points higher at 5498.9. It would have had to top 5501.5 to record its best finish since the summer of 2001.

Paul Webb, trader at CMC Markets said: “This late rally is underlining the view that stocks may well have further upside left in them ahead of the year end.”

The mood was equally buoyant among smaller stocks, with the FTSE 250 Index hitting a fresh high of 8183.9.

In the top flight, mining stocks were among those leading the charge on the back of strong metal prices and upbeat broker comments. Xstrata was the biggest beneficiary with gains of 33p to 1390p, while Antofagasta cheered 35p to 1690p and Rio Tinto lifted 34p to 2414p.

Oil heavyweights BP and Royal Dutch Shell both saw their market value rise by more than 1% despite the cost of a barrel of oil falling below $56 in New York. BP was up 7p at 644p and Shell advanced 24p to 1901p.

A rally among property firms continued today with British Land second on the Footsie risers board, up 3% or 30.5p to 1044p and Hammerson up 16p to 999p.

Strong results from Land Securities earlier this week have led many investors to see commercial property as a safe haven when the UK economic outlook is uncertain. However, shares in Land Securities fell 12p to 1572p after racking up significant gains in the last couple of weeks.

Other blue-chips on the rise included oil-dependent stock Rolls-Royce as investors welcomed the lower crude price. Shares added 10p to 375.75p.

In contrast, a series of energy firms missed out on the spending spree by investors. International Power was one of the hardest-hit, off 3.5p to 237.25p, while Centrica weakened 1.5p to 240.25p and United Utilities dipped 7.5p to 641p.

British Airways lost early momentum prompted by a broker note to end the session 1.75p lower at 313p.

Outside the top flight, the recent woes in the gambling sector were felt by ukbetting after it announced its annual earnings would be at the lower end of expectations.

Shares dropped almost 6% or 3.25p to 53.25p after the company said it experienced a very poor run of sports betting results that affected gross win - turnover less winnings paid out.

The highest Footsie risers today were Standard Chartered up 40p to 1283p, British Land adding 30.5p to 1044p, Rolls-Royce up 10p to 375.75p and Man Group rising 45p to 1805p.

The heaviest fallers were Compass Group, off 3.75p to 206.5p, International Power losing 3.5p to 237.25p, SABMiller, off 12p to 1024p and United Utilities losing 7.5p to 641p.