Steady advances for FTSE

The London market advanced steadily higher today as optimism lingered after last week’s rally.

The FTSE 100 Index was 41.5 points ahead at 4071.2 by mid-morning - consolidating above the 4,000 mark – as investors took their cue from gains in Asian markets.

Japan is to spend around 2% of its output on measures to help workers and small businesses as well as boost regional economies.

The more positive news from the world’s second largest economy lifted the Nikkei 225 by 1%, while Hong Kong’s Hang Seng was 3% ahead.

In London, property and mining companies made the strongest gains, while banking stocks were higher after HSBC completed its £12.5bn (€13.7bn) rights issue with a 96.6% take-up from shareholders.

HSBC offered the new stock at 254p each, meaning investors are already sitting on a tidy profit after shares climbed another 18.5p or 4% to 453p today. Royal Bank of Scotland followed suit with a rise of 1.6p to 32.2p, while Lloyds Banking Group added 5.1p to 84.3p.

In the property sector, many players made gains after UBS brokers raised their target price on Land Securities following the completion of its own rights issue.

LandSec soared 34p to 517p or 7%, while Hammerson topped the Footsie risers board, up 20.25p at 298p. British Land cheered 22.25p to 432.25p, while Liberty International was 17.75p better off at 438.25p.

In the FTSE 250 Index, Taylor Wimpey shares continued to strengthen amid hopes that it was on the brink of a refinancing deal with banks. Shares rose another 27% or 7.75p to 36.25p.

And with bookmakers celebrating a positive result at the Grand National as 100-1 shot Mon Mome romped home, William Hill shares rose 2% to 199.75p and Ladbrokes followed suit, up more than 3% or 6.25p to 208.25p.