FTSE finishes above 6200 mark

The FTSE 100 Index closed above the 6200 mark today for the first time since February 2001.

Tate & Lyle led the charge forward as investors welcomed its decision to put its European starch business up for sale.

With the miners also on the front foot boosted by rising metal prices, the Footsie closed 32.1 points up at 6214.6.

The gains in London followed another record high for the Dow Jones Industrial Average last night after it closed above 12,100 in New York, although it slipped into the red today as investors cautiously awaited the Federal Reserve’s decision on interest rates.

Back in London, Tate & Lyle topped the Footsie risers board with a gain of almost 4% or 29p to 801p after it said it was looking at selling its European starch operation.

The decision followed a fall in sugar prices on the back of the new European Union sugar regime as Tate looked to concentrate on more profitable areas of the business.

It was joined on the risers board by a string of miners as metal prices recovered from recent falls. Vedanta Resources led the charge with a gain of 48p to 1432p while Xstrata was up 42p to 2254p and Rio Tinto lifted 45p to 2895p.

Meanwhile, shares in Rexam, the world’s largest can maker, lifted 9.5p to 604.5p after it announced it has sold part of its food plastics operations for £25 million.

Rexam said it has sold operations in Yate, Gloucestershire, Lidkoping in Sweden and Stilling in Denmark and added the proceeds will be used to pay down borrowings.

But there was less joy among financial stocks ahead of tonight’s rate decision in the US. Insurer Legal & General slipped 1.75p to 142.25p while rival Aviva was off 10p to 792p.

And the banks fared little better as Alliance & Leicester fell 5p to 1124p and Barclays dropped 4.5p to 712.5p.

In the second tier, First Choice Holidays lifted 3% or 6.75p to 233.75p after it posted a trading update in line with expectations, although it did warn that bird flu scares in eastern Europe and airport security alerts in London had held back business.

And asset managers Henderson added 5.25p to 112p which analysts pointed out was due to its stake in Banco Popolare Italiana as it is expected to profit from the bank’s proposed merger.

Elsewhere, troubled NHS software firm iSoft fell 2% or 1p to 47.25p after the accountancy watchdog launched an investigation into possible irregularities over financial statements issued by the firm.

Meanwhile, shares in sterilisation firm Isotron soared 9% after rival Synergy Healthcare unveiled plans for a takeover worth up to £161 million. Shares lifted 61.5p to 746.5p.

The day’s biggest blue chip risers were Tate & Lyle up 29p to 801p, Vedanta Resources up 48p to 1432p, Gallaher up 27p to 884.5p and British American Tobacco up 36p to 1482p.

The day’s biggest blue chip fallers were Amvescap down 27p to 598p, British Sky Broadcasting down 10.5p to 545.5p, Friends Provident down 3.25p to 192.75p and Aviva down 10p to 792p.