Six-year high beckons for FTSE

The FTSE 100 Index looked on course for a fresh six-year high after a sparkling start to the new year today.

The Footsie, which needs to beat 6260 for the best close since February 2001, was 64.9 points higher at 6285.7, a gain of more than 1%.

With little in the way of economic and corporate news to disrupt progress, analysts were hopeful of setting the new high. Wall Street will be closed today in order to observe a day of mourning for former president Gerald Ford.

The biggest movers in London came from the mining sector, with Lonmin up 86p at 3096p and Anglo American 52p higher at 2543p.

Shares also benefited from new year window dressing as analysts outlined their hopes for stocks and sectors in 2007.

Banks were among those in favour after Dresdner Kleinwort lifted its price target for Royal Bank of Scotland. RBS added 30p to 2023p, while HBOS added 10p to 1142p and HSBC cheered 7p to 938p.

Two of the sector’s potential targets, Barclays and Alliance & Leicester, were up 14.5p and 23p to 744.5p and 1161p respectively.

Chemicals group ICI also continued to rise after shares were buoyed by takeover speculation over the festive period. The stock lifted 9p to 461p.

Meanwhile, shares in Vodafone rallied 2% amid hopes that the mobile phone company looked less likely to land Hutchison Essar. The stock was up 2.75p to 144.25p, but had been under pressure recently amid fears that it could overpay for India’s fourth largest operator.

Ahead of a key month for the retail sector, Argos owner Home Retail Group cheered 4.75p to 414.75p, while Currys firm DSG International rose 3.5p to 192p. Next added 19p to 1819p, ahead of a post-Christmas trading statement on Thursday.