Five-year high for FTSE

Shares in London powered to a new five-year high today amid heightened optimism in the City.

The FTSE 100 Index put on 20.9 points by mid-morning to stand at 6178.2 – its highest level since February 2001 and above the previous landmark set on Friday.

It followed another strong performance on Wall Street where the Dow Jones Industrial Average built on recent gains to set another New York record.

Miners were among the stocks in form in London as copper prices continued to rise. Lonmin was up 28p to 2731p and Rio Tinto lifted 23p to 2760p.

Oil stocks were also on the move after the price of crude moved back above 59 US dollars a barrel. BP gained 8p to 600p while Royal Dutch Shell was 17p better off at 1837p.

But they were beaten to the top of the risers board by ITV after chairman Peter Burt scotched speculation that he might stand down. Morgan Stanley also upgraded its rating on the stock as it sensed an improvement in the UK advertising market, sending shares up 1.75p to 102.25p.

Shares in BAE Systems made progress early on after a report suggested it could be considering a merger with shipbuilding firm VT Group. VT rose 12p to 501p but BAE gave back its early gains to sit 0.75p lower at 420p.

Takeover speculation also circled round the water companies with Severn Trent up 12p to 1489p following reports that Terra Firma Capital Partners may make a bid if it is unsuccessful in its pursuit of Thames Water.

Carphone Warehouse shares remained under pressure as the fall out continued from Vodafone’s decision to drop the retailer as a supplier of contract phones. Shares were down 3%, or 8.25p to 295.25p, after a rollercoaster few days for the stock.