FTSE 100 breaks 5,000 barrier

Wednesday, 09 September 2009 05:10

The FTSE 100 closed over 5,000 today for the first time since October 2008.

The index closed up 1.15 per cent - or 56.96 points - to 5,004.30.

Despite mining stocks, energy and travel helped to push the index over the important barrier.

British Airways was up 4.98 per cent on a ratings upgrade and Thomas Cook gained 4.61 per cent.

Cairn Energy rose 4.17 per cent and BG Group climbed, while British Land was up 3.89 per cent.

Lonmin led the drops down 2.80 per cent, while Randgold dropped 1.88 per cent.

Publisher Pearson fell 2.13 per cent and Experian was down 2.08 per cent.

The mood music was strong from the US, as mortgage approvals stateside increased, and the Dow was up 0.66 per cent by 12:05 EDT (17:05 BST).

Tim Hughes, chief market strategist at IG Index, explained prospects for UK economic growth had led the gains today.

"As far as the stock markets are concerned, all signs seem to point in the direction of economic recovery - and there seems to be plenty of statistical weight behind this sentiment," he said.

"Traders will not want to miss out on the next steps of the recovery, and even the most stalwart naysayers will struggle to resist the temptation of a support level at the 5000 mark."

He added: "Nevertheless, a word of warning today came from Alan Greenspan, who said that more financial crises would happen, since they are a result, fundamentally, of 'human nature'.

"For the moment though, the logic of the markets suggest that we may well be able to expect ongoing upward momentum."

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