FTSE bounces back

The London market clawed back some of yesterday's losses today to come back within sight of the 6,400 mark as a mix of strong corporate results, and higher precious metal prices led a modest recovery.

The FTSE 100 Index closed the day at 6380.9, up 23.8 points following yesterday's 55.2 point retreat.

Centrica finished the session at the top of the risers board, up nearly 5%, or 17.25p to 387.5p, after banking annual profits of £1.44bn (€2.15bn). The profits haul was down 5% on last year, but the company highlighted a strong second half performance and tempted investors with the possible return of share buy-backs.

A strong set of results and an upbeat outlook statement from BAE Systems helped shares finish 19.25p higher at 466.5p. The firm said it was set for another year of solid growth led by its US businesses and in particular the Land & Armaments sector.

And firmer metals prices lifted mining stocks, led by Xstrata, which closed up 93p at 2572p.

Kazakhmys finished ahead 40p to 1165p, Vedanta Resources was 41p to 1326p, while Rio Tinto put on 72p to 2865p.

In the energy sector, bid speculation lifted power station operator Drax by more than 3% after reports that the group was sparking interest from a number of venture capital firms. The stock hung onto its early gains to finish 25p higher at 717p.

London congestion charge group Capita led the top-tier fallers after full-year results disappointed analysts at Bridgewell Securities. The shares were off nearly 4% earlier today but staged a late recovery to finish 13.5p down at 654p.

Brewer Scottish & Newcastle also suffered today following a downgrade from Merrill Lynch. The Foster's maker lost its sparkle in results on Tuesday despite the company's plans to make £50m (€74.6m) in cost savings. The shares finished 8.5p off at 545p.

In the second tier wireless technology firm CSR was the top performer, with shares up 57.5p - nearly 8% - to 806.5p after strong results beat expectations and saw revenues jump 45% to US$704.7m (€536.7m). The stock drew positive comments from analyst Panmure Gordon.

IT services business Dimension Data also rose nearly 4% on reports that BT was considering an acquisition of the company. The shares finished up 1.75p at 49.5p.

But Colt Telecom led the FTSE 250 fallers' board as its results came in below analysts expectations and it announced plans for a strategic review to determine the best way forward for the group. The stock was off 19p at 158.5p.

Rentokil Initial fell nearly 8%, down 11.75p at 151p, after full year profits slid by 6% to £251.4m (€375m). Restructuring costs continued to outweigh revenue growth at the troubled hygiene-to-pest control firm.

The biggest Footsie risers were Centrica up 17.25p at 387.5p, BAE Systems up 19.25p to 466.5p, Xstrata ahead 93p to 2572p and Drax up 25p at 716p.

The leading fallers were Capita off 13.5p at 654.5p, Hammerson down 33p at 1623p, Scottish & Newcastle off 8.5p at 545p and Intercontinental Hotels down 18p at 1231p.