FTSE rallies at market close

Banking giant Barclays saw shares surge ahead on better-than-expected annual profits today, but it was a mixed session for the wider market.

The FTSE 100 Index clawed its way into positive territory, closing up 15.7 points at 4307.6, after lacklustre trading held the top tier back early in the session.

Full-year figures from Barclays provided the main focus in an otherwise quiet day for corporate news.

A consensus-beating profit of £6.1 billion for the bank impressed investors, helping the bank secure its place at the top of the leaders’ board.

Shares gained 11.4p to 116.2, or 11%, after the results, which added that writedowns in 2009 would be below the £8 billion posted last year. This was despite warnings over the outlook this year.

Elsewhere in the sector, Royal Bank of Scotland added 0.8p to 24.8p, although Lloyds Banking Group shed 4.5p to 100.5p.

Property firm Hammerson was also one of the session’s top gainers, up 9% or 35.75p to 432.75p, despite its announcement of plans to raise £584.2 million in cash from shareholders.

Other property firms also saw gains today, with Land Securities up 39p at 719p. British Land also rose – by 46.5p to 501p – despite Credit Suisse’s decision to cut its price target over fears the firm will have to raise more capital.

But mining stocks helped drag blue-chips lower. Losers included Xstrata, off 8p at 794.5p after announcing plans for nearly 700 job cuts in its Canadian operations.

Rio Tinto was another leading Footsie faller after RBS analysts forecast a 16% drop in underlying earnings during the second half of 2008.

The group also announced that recently named chairman designate and non-executive director Jim Leng was quitting, forcing it to hunt once more for a successor to chairman Paul Skinner. Rio shares lost 37p to 1920p.

Antofagasta also suffered a 5p fall to 493.75p, after a Barclays Capital downgrade in the wake of a disappointing fourth quarter report.

Oil and gas firm BG Group was also 9p lower at 1076p in the wake of a proposed £360 million offer for Australian coal-seam gas firm Pure Energy.

Elsewhere a downgrade for broadcaster BSkyB from Cazenove brokers and worries over the cost of the recent auction for Premiership television rights left the firm a prominent loser, down 17.75p to 468.25p.

In the FTSE 250, Currys and PC World owner DSG International saw steep falls after weekend reports of a potential rights issue. DSG, which refused to comment, saw shares slide almost 4% or 1p to 25.5p.

Back in the top flight mobile phone giant Vodafone lost 0.9p to 137.5p after it announced a deal with Hutchison Whampoa in Australia to create a business with around six million customers.

The biggest Footsie risers were Barclays ahead 11.4p at 116.2p, Kazakhmys up 31.5p at 321.5p, British Land up 46.5p at 501p and Hammerson up 35.75p at 432.75p.

The biggest Footsie fallers were Lloyds Banking Group down 4.5p at 100.5p, BSkyB off 17.75p a 468.25p, Rolls-Royce down 12p at 321.75p and BAE Systems down 11.5p at 375.5p.