Finance stocks push FTSE to highest level for three months

BRITAIN’S index of leading shares, the FTSE-100, motored to its highest level for three months, helped by a strong performance in finance stocks.

By late morning, the blue-chip index had soared by more than 70 points - just over two per cent - to 3990 . That is the FTSE’s highest intra-day level since January 14. And dealers were optimistic the index would continue gaining momentum.

"I’m sure we’ll test 4000 points," said Lawrence Peterman, investment director at brokerage Eden Group. "The war is over, I haven’t seen any major negatives yet from the US results and people think the bad economic data was a bit of a blip. They’re expecting a recovery in May and June."

Banks and insurers accounted for about a third of the market’s overall rise as fund manager Amvescap added 5.1 per cent and Lloyds TSB rose 4.3 per cent.

Oil giants BP and Shell also put their weight behind the market, rising 1.5 per cent each. The gains came as Saudi Arabian oil minister Ali al-Naimi said Opec was aiming to keep prices near their present level of $25 a barrel.

Overnight, US markets rallied near to three-month highs. The Dow Jones Industrial Average climbed 156 points, or 1.87 per cent, to 8484.