Banking shares kept the London market aloft today following bullish comment on the sector from investment brokers.

Banking shares remained out of favour on the London market today, despite a reassuring trading update from Barclays Capital.

Banking stocks enjoyed a welcome rebound today after renewed hopes of a bid for crisis-hit Northern Rock lifted sentiment in the sector.

Banking group Lloyds TSB was one of the best top flight performers for a second consecutive session today as bid talk continued.