LONDON'S leading share index gained more than 1 per cent yesterday, reversing early losses as it received a boost from better-than-expected durable goods orders in the US and stronger commodity prices.
The benchmark FTSE 100 ended up 57.4 points
at 5,528.1, a gain of about 1.1 per cent, after falling to 5,434.7 earlier in the session.
Across the Atlantic, US stocks rose in early trading to boost UK sentiment after data showed that new orders for long-lasting US manufactured goods jumped a surprising 1.3 per cent in July on strong civilian aircraft sales, while a gauge of business investment also rose unexpectedly.
But the Footsie remains about 14 per cent down on the start of the year.
CMC Markets dealer Jimmy Yates said: "It's certainly been a profitable day for the FTSE with the London index re-taking the 5,500 level and the petrochemicals sector accounting for more than a third of the gains.
"Banks have also been forging higher after their recent losses and the success of Freddie Mac's recent bond sale is again cheering sentiment for the sector on both sides of the Atlantic."
In the UK top-flight, oil and gas services firm Petrofac was the leading performer, up 37p to 629.5p, after half-year net profits jumped 57 per cent and it said it was confident of meeting full-year forecasts. Security business G4S followed close behind, as it also benefited from the release of half-year results. Its shares jumped 12.5p to 224p after it reported a 26 per cent rise in interim profits.
South American copper miner Antofagasta also impressed the City with forecast-beating results and was rewarded with a gain of 22p to 592p. Other players in the sector making progress included Eurasian Natural Resources and Kazakhmys, which rose 42p to 1,043p and 28p to 1,339p respectively.
The leading Footsie faller was pubs group Enterprise Inns, down 4 per cent or 14p to 307.5p, after a broker downgrade from Cazenove.
In the second tier, Taylor Wimpey fell 3.75p to 48.25p after the UK's biggest housebuilder by volume said first-half underlying profits dived 96 per cent to £4.3 million and it reported a bottom-line loss of £1.54 billion. It was joined by Bovis Homes which dropped 13.75p to 427.5p, while Persimmon slipped 5.75p to 348.75p.
On the banking front, Royal Bank of Scotland nudged up 4p to 221.75p as it unveiled three new non-executive directors. HBOS gained 8p, or 2.8 per cent, to 293.25p.
Fund management firm Henderson renewed fears of an exodus from the UK after confirming it was considering moving its tax base to Ireland, but its shares were unchanged at 121p in the FTSE 250.
Pharmaceuticals slipped as traders said investors were switching from the sector, which has been the best performer in Europe so far this year. AstraZeneca dipped 7p to 2,647p.
The full article contains 523 words and appears in The Scotsman newspaper.
