FTSE losses wipe out early gains to flat finish

The FTSE 100 ended the week flatly up 0.84 per cent on the day at 6304.30.

Nuclear power firm British Energy led the way in early gains on the index amid takeover talk, up 5.22 per cent to 715p, while the London Stock Exchange Group was up 5.06 per cent as speculation grew it would post record earnings next week.

BA's sterling performance saw its share price rise 4.02 per cent.

Banking stocks took the wooden spoon with RBS and Barclays down 3.44 per cent and 2.03 per cent respectively.

Rolls Royce fell 2.39 per cent – despite winning a $500 million deal with Thai Airways - while Tate & Lyle was down 1.38 per cent.

David Jones, chief market strategist at spread betting firm IG Index, said: "After a couple of weeks of inconclusive sideways trading, the FTSE 100 rocketed out of the starting gate on Friday morning to blitz through the 6300 level and trade at its highest since 8 January.

"The news flow was all positive in the morning - British Airways numbers beat full year profit expectations and British Energy confirmed it had received a number of takeover offers. This helped momentum along with no doubt some desperate closing of shorts by those of a more bearish disposition helping to fuel the rally."

He added: "The afternoon has seen a chunk of these early gains given up but the FTSE for now continues to hold around the 6300 mark."

Mr Jones went on to predict the next target was for the FTSE 100 to hit 6400 – last seen on early January.