FTSE within striking distance of 6,000

The London market closed within striking distance of the 6000 mark tonight as steel giant Corus stoked fresh interest in UK stocks.

Shares in Corus, which were languishing at around 5p three years ago, surged 12% or 9p to 85.25p during the session after it agreed to sell its aluminium business.

Corus is already tipped as a bid target as the steel industry consolidates and with insurers racking up strong gains on the back of annual figures from Prudential, the FTSE 100 Index ended the session 28.1 points higher at 5993.2.

Investors snapped up stocks on both sides of the Atlantic during the afternoon after modest inflation data in the United States dampened expectations of higher interest rates there.

Jimmy Yates, a trader at CMC Markets, said US consumer sentiment figures would be key tomorrow and could force more rate rises on to the back-burner.

But he believed the Footsie may be starting to get ahead of themselves, stating: “Unless a jump past 6000 is supported either by M&A speculation or some fundamental news, it could prove difficult to sustain.”

Former British Steel company Corus was easily the best performing top-flight stock after agreeing to sell its aluminium business to United States-based firm Aleris for a better-than-expected £570 million.

The news came three years after an earlier attempt failed and overshadowed a warning that soaring energy costs in the UK were hampering current trading.

Corus was followed up the blue-chip risers board by Prudential after it banked profits of £1.71 billion and benefited from strong performances in the US and Asia. Shares in the Pru were up 4% or 22.5p to 627.5p, while Royal & Sun Alliance added 6.25p to 138.25p.

Vodafone was also making progress – 3p stronger to 130p – after reports said two private equity groups may raise the stakes in the race for the company’s Japanese operation.

Investors initially took some chips off the table in the online gaming sector after the US House Financial Services Committee yesterday approved a bill stopping firms such as 888 Holdings and PartyGaming from accepting payments by credit cards or funds transferred electronically.

But both companies were in positive territory by the end of the session as analysts extolled the view that the bill was unlikely to become law.

PartyPoker owner PartyGaming put on 0.5p to 121p, while 888 Holdings added 0.5p to 180p in the second-tier on a day when it posted annual results ahead of expectations and reported a positive start to the current financial year.

But the top flight was prevented from rising even higher by copper miners Kazakhmys and Antofagasta, which eased 17p and 37p to 969p and 2028p respectively.

The biggest Footsie risers were Corus up 9p at 85.25p, Royal & Sun Alliance ahead 6.25p at 138.25p, BT Group up 8.75p at 233.5p and Prudential ahead 22.5p at 627.5p.

The biggest fallers were Antofagasta down 37p at 2028p, Kazakhmys off 17p at 969p, Kingfisher down 4p at 248p and Carnival off 43p at 3020p.