Footsie rallies

London’s leading shares ended a volatile week on the front foot today rallying more than 100 points.

Despite sharp swings in fortunes, the FTSE 100 Index ended the week higher than it began it with traders taking a measured look at recent share price movements.

Building on yesterday’s gains, the top flight index entered the Bank Holiday weekend up 113.3 points at 5791 – representing the greater part of 200-point gain in just two days.

But the biggest turnaround was outside the Premier League with the FTSE 250 Index rallying 317.5 points to close at 9508 points.

Amid better economic signals on inflation in the United States, Wall Street’s Dow Jones Industrial Average was also on positive ground as trading in London closed for the day.

In London, Persimmon was among the biggest winners, rising 5% or 60p to 1258p after it became one of a number of housebuilders to receive an upgrade from broker Citigroup.

The other stocks to benefit in the FTSE 250 Index were George Wimpey, which cheered 5% or 22p to 481p, while Taylor Woodrow gained 18.25p to 358.25p.

Victims of recent falls were also well ahead today with miners Kazakhmys, Xstrata, and Anglo American all gaining ground – gaining 62p at 1138p, 91p at 2026p and 91p at 2165p respectively.

Also featuring among the main risers was airports operator BAA which put back some of yesterday’s losses, gaining 33.5p at 820p after Spanish suitor Ferrovial shrugged off news of an OFT probe and indicated it was still interested in pursuing its £8.75 billion offer.

Other notable rises included Marks & Spencer, which rose 8p to 555.5p at the end of a week in which it posted a 35% rise in half-year profits.

The mood in the retail sector was helped by positive sales figures from John Lewis after a week in which shoppers took shelter from the rain by going shopping for televisions and fashion items.

Steel maker Corus also regained lost ground with a 3% rise, up 12.75p to reach 385.75p. Sentiment was helped by news of further consolidation in the sector after Mittal target Arcelor agreed a surprise merger with Russian firm Severstal.

Cable & Wireless also put back losses seen yesterday after it told investors it had cancelled a £250 million share buy-back scheme. The stock posted a rise of more than 4%, up 3.75p to 101.25p.

A hint of profit taking accounted for the only FTSE 100 faller, with sugar group Tate & Lyle easing a penny to close at 563p.

Outside the top flight, House of Fraser shares jumped 5%, or 6.75p to 132.25p, amid speculation it could be about to receive a takeover approach from the acquisitive Icelandic investment group Baugur.

The biggest FTSE 100 risers were Kazakhmys up 62p to close at 1138p, British Land Co gaining 67p to reach 1300p, Persimmon 60p higher at 1258p and Xstrata increasing 91p at 2026p.

The only FTSE 100 faller was Tate & Lyle which slipped 1p to close at 563p.