By Simon Falush
LONDON, March 19 (Reuters) - Britain's top share index edged to its highest close in 21 months on Friday, spurred by strength in banking stocks after Lloyds Banking Group said it would return to profitability in 2010.
The FTSE 100 ended up 0.1 percent or 7.51 points at 5,650.13, its highest closing level since 5,666.10 set on June
25 2008. Earlier the index set a 21
month intraday high of 5,691.22.
Banks were the biggest gainers, having slipped on Thursday, as bailed-out lender Lloyds jumped 8.2 percent, top gainer in the FTSE 100, after saying it would return to profitability in 2010 after two years of heavy losses.
In the same sector Barclays and Royal Bank of Scotland rose 1.3 and 4.8 percent respectively.
But investors were reluctant to push prices overall much higher, with the budget on Wednesday next week being closely watched ahead of an election likely to be held on May 6.
'The market is fairly well supported, but the market is fairly directionless before the budget next week and we're unlikely to see a great deal of movement before then,' said Philip Gillett, sales trader at IG index.
The world's largest listed hedge fund Man Group gained 1.4 percent and fund firm Schroders climbed 1.4 percent.
Resolution, the insurance-focused takeover vehicle, rose 1.4 percent. Deutsche Bank kept its 'hold' rating and cut its target price on the firm, but said results next week could cast a spotlight on an 'unreasonably cheap valuation'.
The market had risen earlier in the session after the 'quadruple witching' expiry of futures and options contracts, often a time of increased volatility.
But the index retreated in afternoon trade as miners fell, tracking weaker metal prices and pressured by a rising dollar.
Eurasian Natural Resources, Fresnillo, Kazakhmys, Xstrata and BHP Billiton fell 0.3 to 2.3 percent.
Defensive stocks were prevalent among the list of fallers on the FTSE. Utilities Centrica, Severn Trent and National Grid fell 0.7 to 2.4 percent, while British American Tobacco lost 1.3 percent.
Energy suppliers International Power and Scottish and Southern Energy shed 1.3 and 1.4 percent respectively.
(Editing by David Holmes) Keywords: MARKETS BRITAIN STOCKS/CLOSE (simon.falush@reuters.com. +44 20 7542 7681) Reuters Messaging: simon.falush.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
LONDON, March 19 (Reuters) - Britain's top share index edged to its highest close in 21 months on Friday, spurred by strength in banking stocks after Lloyds Banking Group said it would return to profitability in 2010.
The FTSE 100 ended up 0.1 percent or 7.51 points at 5,650.13, its highest closing level since 5,666.10 set on June
25 2008. Earlier the index set a 21
month intraday high of 5,691.22.
Banks were the biggest gainers, having slipped on Thursday, as bailed-out lender Lloyds jumped 8.2 percent, top gainer in the FTSE 100, after saying it would return to profitability in 2010 after two years of heavy losses.
In the same sector Barclays and Royal Bank of Scotland rose 1.3 and 4.8 percent respectively.
But investors were reluctant to push prices overall much higher, with the budget on Wednesday next week being closely watched ahead of an election likely to be held on May 6.
'The market is fairly well supported, but the market is fairly directionless before the budget next week and we're unlikely to see a great deal of movement before then,' said Philip Gillett, sales trader at IG index.
The world's largest listed hedge fund Man Group gained 1.4 percent and fund firm Schroders climbed 1.4 percent.
Resolution, the insurance-focused takeover vehicle, rose 1.4 percent. Deutsche Bank kept its 'hold' rating and cut its target price on the firm, but said results next week could cast a spotlight on an 'unreasonably cheap valuation'.
The market had risen earlier in the session after the 'quadruple witching' expiry of futures and options contracts, often a time of increased volatility.
But the index retreated in afternoon trade as miners fell, tracking weaker metal prices and pressured by a rising dollar.
Eurasian Natural Resources, Fresnillo, Kazakhmys, Xstrata and BHP Billiton fell 0.3 to 2.3 percent.
Defensive stocks were prevalent among the list of fallers on the FTSE. Utilities Centrica, Severn Trent and National Grid fell 0.7 to 2.4 percent, while British American Tobacco lost 1.3 percent.
Energy suppliers International Power and Scottish and Southern Energy shed 1.3 and 1.4 percent respectively.
(Editing by David Holmes) Keywords: MARKETS BRITAIN STOCKS/CLOSE (simon.falush@reuters.com. +44 20 7542 7681) Reuters Messaging: simon.falush.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
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