FTSE closes at 5636.6

Updated 17.19 Fri Aug 29 2008
Keywords: London, stock market, FTSE

Strong gains for oil and banking stocks saw the FTSE 100 index close at a two-month high, up 35.4 at 5636.6.

The recovery by financial firms, amid hopes the worst of the credit crunch may be over, saw Halifax Bank Of Scotland rise 10.25p to 315.75p, Royal Bank of Scotland improve by 4.75p to 234.75p and Barclays lift 3.5p to 353p.

Winners: Petrofac, up 31.5p to 652.5p, Wood Group up 21.5p to 476.75p, Cairn Energy up 121p to 2978p and London Stock Exchange which closed up 31p at 793p.

Amid the solid oil prices, Petrofac was the FTSE's best performer, up 5 per cent or 31.5p to 652.5p. Oil and gas services firm Wood Group also added 21.5p to 476.75p.

Sainsbury's enjoyed early strong gains after market rumours of a 500p a share takeover approach, but the rise gradually eased to leave the shares up 3.75p at 347.75p.

Meanwhile, RSA Insurance lost Thursday's gains amid speculation of a bid from Zurich Financial Services.

The stock slipped 2 per cent or 3.3p to 150.8p, while among life insurers Prudential was 6.5p lower at 548p and Legal & General fell 1.3p to 100.5p.

Winners: Petrofac, up 31.5p to 652.5p, Wood Group up 21.5p to 476.75p, Cairn Energy up 121p to 2978p and London Stock Exchange which closed up 31p at 793p.

Losers: Enterprise Inns, down 11.25p at 303.5p, Drax Group down 16.5p to 746.5p, RSA Insurance down 3.3p to 150.8p and National Grid down 14.5p to 714.5p.

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