FTSE in the black

The financial sector drove the FTSE 100 Index forward today as results from Norwich Union owner Aviva and bank Standard Chartered cheered investors.

The two heavyweights dominated the top-flight risers board with gains of 4%, while buoyant mining and oil stocks also provided some upward impetus.

The gains followed a strong session yesterday and saw the Footsie recover nearly all its losses earlier in the week to stand 23.8 points higher at 5867.9 at lunchtime.

It had suffered its worst day in over four months on Tuesday with losses of more than 80 points amid heavy profit taking and big losses in New York.

Standard Chartered was today’s biggest climber in London – up 61p to 1532p - after reporting a 19% rise in pre-tax profits to $2.6bn (€2.1bn), which analysts said was at the top end of expectations.

There was mixed fortune elsewhere in the banking sector as HSBC gained 4p to 986p but Halifax and Royal Bank of Scotland owner HBOS continued to struggle after yesterday’s sell-off, sinking a further 12.5p to 1005p.

Insurers were in the spotlight after Aviva unveiled an operating surplus of £2.65bn (€3.9bn). The stock rose 30.5p to 821.5p as investors applauded its profits and decision to ditch its 5% dividend growth target to pay an increase of 9%.

This enthusiasm was replicated elsewhere in the insurance sector where Prudential ticked up 1.5p to 608.5p and Royal & Sun Alliance jumped 3.75p to 133p.

Mining firm Xstrata hit a new all-time high as analysts continued to be delighted by its strong results yesterday, which made it the top riser of that session.

The stock put on 2% or 33p to 1790p while rivals Antofagasta and Ro Tinto - up 36p and 21p at 2109p and 2721p respectively.

But Kazakh copper miner Kazakhmys was the sector’s top performer, moving 19.5p higher to 909p.

Oil stocks continued their recovery after a recent weakening of crude prices left them under pressure. BP was up 2.5p while Royal Dutch Shell gained 6p to 1845p.

Elsewhere, newspaper group Trinity Mirror fell 3p to 577.5p even though it overcame a slowdown in advertising revenues to increase pre-tax profits to £220.9m (€323m) in 2005 from £208.5m (€304m) a year earlier.

And soft drinks maker Britvic slumped 21% or 56.25p to 217.75p after warning that slowing growth in the UK market had put it on course for profits at the lower end of expectations.