FTSE hits four-month high on beer

The FTSE 100 hit its highest level since the large falls recorded in January today – closing at 6260.40.

The biggest winners of the day were pub operators Enterprise Inns, Marstons, Punch Taverns and Greene King.

Enterprise Inns was up on talk it may convert to Real Estate Investment Trust (Reit) status, and others in the sector followed suit. The firm finished up 25 per cent to 504p.

Yell Group saw gains after the publisher of the Yellow Pages in the US posted good results and expectations were high of a UK repeat.

On the down side Rank fell on news sales falls were easing at its bingo halls and casinos in the wake of the smoking ban. Revenue fell eight per cent.

888 Holdings also saw falls, along with copper miner Antofagasta and mobile satellite communications services provider Inmarsat.

However, the biggest story was rumours of the Fed upping US interest rates.

Anthony Grech, market research analyst at spread betting firm IG Index, said: "The FTSE 100 Index is continuing its positive run and hitting a four-month high, brushing aside rumours that the Fed may raise interest rates.

"Wall Street shuddered a little on the news – along with concerns over oil prices and consumer spending – with the Dow Jones opening lower as traders considered the Fed's plans to curb inflation.

"However, the FTSE 100 added 0.7 per cent by lunchtime, buoyed by upbeat first quarter results from Imperial Tobacco and British American Tobacco, while booming oil prices helped major producers BP and Royal Dutch Shell advance. Other winners included construction firm Persimmon, which made gains despite recent falls in interest from investors in the housing industry."

Daniel Barnes