FTSE climbs on bank stocks and basic resources

Tuesday, 16 March 2010 11:18

By myfinances.co.uk staff

The FTSE 100 climbed 35.29 points, or 0.6 per cent, to 5,629.14 led by banks and basic-resource producers.

Royal Bank of Scotland Group rallied 2.2 per cent to 43.65p after the Financial Times reported the lender may buy back at least £10 billion ($15.1 billion) of debt in a balance sheet restructuring plan to boost its capital strength.

Meanwhile, Barclays Bank, Britain's second-largest bank, gained 2.1 per cent to 355.75p as Morgan Stanley increased its share-price estimate, saying "capital providers are likely to take a greater share of industry profits."

Rio Tinto added 1.2 per cent to 3,701.5p as copper gained in London.

Xstrata gained 1 per cent to 1,168p. The world's largest exporter of power-station coal had the outlook on its Baa2 senior unsecured ratings revised to stable from negative at Moody's Investors Service.

Royal Dutch Shell advanced 1.2 per cent to 1,933.5p. Shell said it will spend more than $100 billion by 2014 to revive production growth and expects output to rise by 11 per cent to 3.5 million barrels of oil equivalent a day in 2012.

Close Brothers Group soared 4.8 per cent to 749.5p after the British investment bank said first-half net income almost doubled to £46.1 million.

G4S retreated 2.8 per cent to 270.7p after the world's largest security company said growth excluding acquisitions in 2010 will be "broadly similar" to 2009. G4S reported a 34% increase in full-year net income to £202.5 million.

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