FTSE 100 holds on to Friday's gains

Monday, 21 July 2008 12:00

The FTSE 100 closed up 0.52 per cent, holding on to the gains made last week.
 
The index closed Monday up 27.90 points to 5,404.30.
 
Commodities saw greatest boost, with Ferrexpo rising 7.59 per cent, Lonmin up 5.02 per cent, Kazakhmys up 4.59 per cent and platinum produce Johnson Matthey climbing 4.38 per cent.
 
Land Securities rose 5.82 per cent.
 
After the poor showing on its rights issue, HBOS fell 6.21 per cent.
 
WPP Group was down 4.13 per cent and Intercontinental Hotels fell 3.16 per cent, while Aviva dropped 3.15 per cent and Schroders fell 3.06 per cent.
 
Anthony Grech, market strategist at IG Index, said: "Although today has been a little muted, the fact that the market has once again pushed higher will be seen by some as further confirmation that the near-5,000 level hit last week marked an interim low for the UK and a shift in sentiment.
 
"Corporate and economic news was a bit thin on the ground on Monday with the main focus on HBOS, when it was revealed that only around eight per cent of shareholders chose to take part in its rights issue."
 
He added there could some more rocky trading sessions ahead for the bank, until underwriters have dealt with the stock they were left holding.
 
"In terms of the FTSE, the 5500 mark could prove to be the next big target, ending up as something of a crunch level. The test will be, if we get there, whether the market can push higher or if it turns out to be the end of this bear market rally," he concluded.

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