FTSE closes in on 6000 barrier

The FTSE 100 Index today looked set to trade above the 6000 barrier for the first time since mid-May.

Stronger mining and banking stocks ensured the London market continued its recent progress, with the Footsie ahead 37.5 points at 5986.6 by the close.

The prospects for a return to the 6000 mark are now likely to hinge on the resumption of trading for New York markets, which were closed today for a public holiday.

Oil prices below 70 US dollars a barrel were also a plus point for much of the market, although the same factor caused heavyweight stock BP to fall and Cairn Energy to dip 1%.

Miners were on the up with Rio Tinto rising 90p to 2775p and BHP Billiton lifting 28p to 1035p as the joint owners of a strike-hit mine in Chile saw workers return to their posts after a month-long dispute. Kazakhmys rose 47p to 1287p while Anglo American was ahead 72p at 2403p.

Banking stocks were also in favour, with Lloyds TSB up 8p at 533.5p, Northern Rock ahead 8.5p at 1138.5p and Bradford & Bingley 12.25p stronger at 475p. Barclays proved the exception after a fall of a penny to 672.5p.

Oil stocks BP and Cairn Energy were under pressure because of the falling price of crude. BP slipped 1.5p to 594.5p and Cairn dipped 29p to 2116p, on the eve of half-year results from the India-based explorer. Royal Dutch Shell fared better with a rise of 17p to 1894p.

One of the few blue-chip companies with news for the market failed to gain a warm response, as plans by Currys owner DSG International to start a £50 million IT and audio-visual customer service business were met with a fall of 0.5p to 207.75p.

Outside the top flight, casino operator Stanley Leisure jumped 19% as it confirmed it had received a takeover approach.

The announcement came less than a week after former potential merger partner, London Clubs International, agreed an offer from Las Vegas-based Harrah’s Entertainment. Analysts speculated that Stanley – up 130.5p at 811p – could be in the sights of Mecca Bingo owner Rank Group, which rose 6.25p to 233p.

Elsewhere, market research company Taylor Nelson Sofres gained as it offset an 11% fall in half-year profits with news of plans to turn around its troubled American division. Shares were up 7.25p at 201.5p, a gain of 4%.

And housebuilders were in favour amid continued signs of resilience in the sector, despite threats of higher interest rates.

Top flight company Persimmon lifted 31p to 1275p, while Bovis Homes was up 22p at 859.5p and estate agency group Countrywide lifted 14.5p to 434.5p.

The biggest Footsie risers were Kazakhmys up 47p at 1287p, Rio Tinto ahead 90p at 2775p, Anglo American up 72p at 2403p and PartyGaming ahead 3.5p at 119.25p.

The biggest fallers were BG Group down 10p at 684p, Cairn Energy off 29p at 2116p, Morrisons down 1.5p at 219.75p and Vodafone off 0.75p at 114p.