FTSE closes at 6356.5

The FTSE 100 Index ended the day up 20.8 points higher at 6356.5.

There were steady gains as investors fled to safe-haven pharmaceutical stocks after a poor start to the week for retailers and housebuilders.

Medical devices firm Smith & Nephew led the way, up more than 7 per cent or 43.5p to 640p.

It was followed higher by drug giants GlaxoSmithKline and AstraZeneca as traders turned to steadier sectors.

Glaxo rose 40p to 1361p and Astra stood 64p higher at 2234p by the close with Shire - up 29p at 492p - also joining the risers.

Strong metals prices meanwhile helped Lonmin move 117p higher to 3262p and Kazakhmys gain 44p to 1335p and buoy the benchmark index.

But housebuilders were suffering after Halifax's latest assessment of the property market showed a 0.8 per cent drop in values during the final quarter of last year compared with the previous three-month period.

This was the first quarterly drop since the second quarter of 2000, overshadowing a 1.3 per cent rise in prices during December.

Persimmon was the worst affected, down nearly 5 per cent, or 33.5p at 651.5p, while Taylor Wimpey fell 8.7p to 171.1p, a 5 per cent decline.

The leading faller was Yellow Pages publisher Yell Group, downgraded by brokers at UBS amid concerns over economic conditions putting long-term pressure on directories. Yell was off 6 per cent, or 21.25, to 321.75p.

There was also little comfort for retail stocks after the British Retail Consortium revealed the sector endured its worst Christmas in three years.

But with much of the downside already priced in over recent days, shares were largely back in positive territory by the close.

Marks & Spencer gained 5p to 503.5p despite low expectations for festive sales figures tomorrow, while fashion retailer Next, which has suffered in the past week amid a gloomy outlook, rose 11p to 1407p.

Among smaller stocks, Domino's Pizza was up 3p to 178p after delivering a 17.6 per cent festive surge in sales.

And a post-Christmas trading revival for Bay Trading owner Alexon, who said profits would not be as bad as first feared, saw shares in the group rise more than 10 per cent or 7.25p to 77.5p.

Winners - Smith & Nephew up 43.5p at 640p, BT ahead 13.75p at 277.75p, Lonmin up 117p at 3262p and Kazakhmys up 44p at 1335p.

Losers - Yell down 21.25p at 321.75p, Persimmon off 33.5p at 651.5p, Taylor Wimpey down 8.7p at 171.1p and First Group down 31p at 701p.

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