THE FTSE 100 index powered 1.7 per cent ahead for a second day of strong gains amid relief over Citigroup's first-quarter figures.
London's blue chips extended the 2.5 per cent rally seen on Thursday after a turbulent week, which had seen the Fo
otsie plunge to three-year lows before recovering.
Better-than-expected results from Wall Street banking giant Citigroup helped continue the bounce back from banking shares, which drove the FTSE 100 90.1 points higher to close at 5376.4.
Citi posted a $2.5 billion (£1.25bn) second-quarter loss, well ahead of the $3bn deficit feared by analysts.
It prompted a reversal of more than 130 points, after the FTSE 100 had been mired in negative territory during mid-morning trading.
US-facing building supplies firm Wolseley led the charge amid hopes the credit write-down corner may have been turned. The group's shares closed up more than 14 per cent, or 41.25p to 327p.
Barclays followed on the risers' board, confirming it had raised £4.5bn of new capital through a share issue. Wealthy overseas investors such as sovereign wealth funds are providing most of the funds after just 19 per cent of existing shareholders took part in the share issue.
Shares were initially flat after the news, but jumped 10 per cent, or 29.75p, to 320.25p, amid the Citi-inspired rally.
Lloyds TSB was next, adding 30.5p to 331p, with Royal Bank of Scotland also enjoying a second-day rebound, ahead 10 per cent, rising 18.1p to 197.6p, outstripping the 9 per cent gain seen during Thursday's session.
Despite fears that HBOS's 275p a share rights issue had flopped, the bank's shares climbing 13.75p to 282p.
In the FTSE 250, housebuilders were starring with some impressive double-digit percentage gains.
Taylor Wimpey was up 12 per cent, or 5p, to 45.25p, consolidating a strong session on Thursday. Charles Church owner Persimmon also added more than 15 per cent, or 44.5p, to 336.5p.
Miners remained on the back foot thanks to falling commodity prices, with Eurasian Natural Resources down 6 per cent, or 64p to 1,036p, while Lonmin was also down heavily, losing 104p to 2,410p.
Oil trading at around $130 a barrel, more than 11 per cent down on last week's $147 high, also depressed energy-related firms. Royal Dutch Shell fell 4p to 1,795p, with prospector Tullow Oil 10p cheaper at 783.5p.
But British Airways was among the index's biggest risers, up nearly 7 per cent, or 14.75p, to 242p.
Supermarket giant Tesco was under pressure despite better news on the sales front for high street icon John Lewis. The department store chain revealed a 5.9 per cent jump in revenues for the week to last Saturday, but Tesco fell 13p to 375.8p after two European contemporaries issued profit warnings.
The full article contains 506 words and appears in The Scotsman newspaper.
