FTSE run continues

The London market’s best run of the year continued today after the FTSE 100 Index added another 1.5% in a strong start to the week.

The positive start to the US earnings season has buoyed confidence, helping the Footsie to rise a further 65.3 points to 4454.1 by mid-morning.

Results from drugs giant GlaxoSmithKline and output figures for the second quarter of the year are expected to test spirits later in the week.

In the meantime investors were content to continue their recent buying spree, with banks among those on the risers board.

The sector was buoyed by a newspaper report which suggested that accounting rules could help Lloyds Banking Group report a half-year profit, despite bad debt provisions totalling £13bn (€15bn).

Lloyds shares jumped 8% or 5.22p to 72.72p, while Royal Bank of Scotland added 2.11p to 40.51p.

Insurers were also attracting interest after investment firm Resolution said it remained committed to a takeover of life and pensions firm Friends Provident. It also sweetened its proposed offer, causing shares in Friends to climb 1.85p to 73.35p.

The consolidation talk in the sector meant Prudential rose 23p to 411p, Aviva added 8p to 326.5p and Standard Life cheered 5.3p to 194.8p.

Ahead of results this week, Glaxo rose 36.5p to 1148.5p on reports that it is negotiating with up to 30 different countries about supplying them with a vaccine for swine flu.

In a quiet session for corporate news, Domino’s Pizza UK and Ireland jumped as much as 8% after it revealed a better-than-expected 25% rise in half-year profits and lifted its dividend by 30%.

Shares were later 4% or 8p higher at 227.5p.

Meanwhile, hopes of better trading in the pubs sector encouraged Merrill Lynch to upgrade a number of players, including Greene King – up 17p at 436.75p and JD Wetherspoon, which climbed 15p to 448.25p.