FTSE holds its ground

The FTSE 100 Index held its ground above the 5200 mark today to close at its highest level for more than a year.

Investors had a spring in their step as they contemplated third quarter figures from the likes of Goldman Sachs and Bank of America this week, with London’s climb mirroring another rise on Wall Street.

The Footsie’s latest rally saw it close up 48.3 points at 5210.2, its highest close since September last year, helped by gains for heavyweight stocks, such as Vodafone, oil giant BP and pharmaceuticals firm GlaxoSmithKline.

David Jones, chief market strategist at IG Index, said today’s latest landmark was an important breakthrough for investors.

The Dow Jones Industrial Average also opened up today, gaining 0.5% in early trade as it nudges closer to the 10,000 mark.

A leading US survey today suggested that more than 80% of economists believe the country’s recession is over although they expect the recovery will be slow.

In London a surge in oil prices to 73 US dollars a barrel saw BP lift 9.7p to 552.2p, while Royal Dutch Shell added 28p to 1783p.

The rise of 2.05p to 134.5p for Vodafone came as it recouped losses seen on Friday and announced plans to transfer its US listing to the Nasdaq exchange. The move is expected to result in lower annual listing fees.

Meanwhile drugs group GlaxoSmithKline was 17.5p higher at 1260.5p after the firm’s chief executive said it would benefit in the second half of the year from providing swine flu vaccines.

Outside the top flight, ITV shares rose 2% or 0.95p to 47.33p after attention on its succession saga was deflected by a positive note from Goldman Sachs. The broker said evidence from media buyers pointed to a stronger-than-expected recovery in advertising markets for the final two quarters of the year.

However, ITV’s leadership crisis is no closer to ending after Michael Bishop ruled himself out of the running for the chairman’s position and chief operating officer John Cresswell announced he will leave the company upon the arrival of a new chief executive.

Shares in building supplies firm Speedy Hire fell more than 11% – down 5p to 38.25p – after it said first half sales were down 29% and warned there was no sign of a return to usual seasonal trends.

Meanwhile, retailer JJB Sports rose 1.75p to 34.50p after it pressed ahead with plans for a £100m (€106m) rights issue. It was forced to postpone the fundraising on Friday due to unfounded rumours about payments to chairman David Jones.

The biggest Footsie risers were Old Mutual up 4.8p at 110.1p, Man Group up 12.4p to 353.7p, Amec up 24.5p to 808p and Johnson Matthey up 41p to 1399p.

The biggest Footsie fallers were Lloyds Banking Group down 2.39p at 91.61p, Thomas Cook Group down 4.8p at 227.7p, National Grid off 9p at 590p and Serco Group down 7.5p at 516.5p.