FTSE closes at 5446.3

Updated 17.38 Mon Sep 08 2008

Keywords: shares, stocks, FTSE 100

The FTSE 100 Index closed 205.6 points up at 5446.3 after a computer glitch wiped out trading.

Technical woes paralysed the London Stock Exchange for nearly seven hours on one of the busiest days of the year.

A computer glitch paralysed the London Stock Exchange for nearly seven hours on one of the busiest days of the year

Traders and investors hoping to cash in on the bail-out of US mortgage giants Fannie Mae and Freddie Mac had to wait until 4pm to begin trading.

Sunday's rescue of Fannie and Freddie spurred hopes of a recovery for the slumping US housing market and an easing of the credit crunch.

In London, banks occupied four of the top five riser positions with high street giant Barclays in pole position.

Shares in the group were nearly 12 per cent ahead, or 37.75p, at 355p. Halifax Bank of Scotland was also more than 11 per cent better off, or 31.5p at 307p, with Royal Bank of Scotland close behind with a 24.75p rise to 244.5p.

Other sectors exposed to the US housing market also surged forward. Heating and plumbing firm Wolseley added 47p to 485p. Barratt Developments gained 18.75p to 165.75p and Persimmon added 16.25p to 420p.

Other retailers were also in much better shape, with Marks & Spencer up 16.75p to 260.75p, and Sainsbury's ahead 26.75p to 362.75p. B&Q owner Kingfisher 10p also added 10p to end the day at 139.8p.

ITV shares lifted 1.8p to 44p, but that may not be enough to stop the company's FTSE 100 membership being threatened on Wednesday when index bosses meet for their quarterly review.

Winners: Barclays, up 37.75p to 355p, Wolseley up 47p to 485p, HBOS up 31.5p to 307p and Royal Bank of Scotland which ended the day 24.75p better off at 244.5p.

Losers: GlaxoSmithKline, down 20.5p to 1249.5p, and Unilever, which closed down 11p to 1580p.