FTSE rallies on energy stocks

Friday 17th October 2008, 5:25PM BST.

FTSE rallies on energy stocks The FTSE 100 rallied for the first time in three days to finish the week 5.22 per cent higher.

After a slump this morning, the UK’s benchmark index surged in the afternoon session to close at 4,063.01, led by energy companies.

BP and Royal Dutch Shell were both trading above eight per cent, while mining companies also benefited from the rise in confidence.

Anglo American shares were up 12.32 per cent, while Rio Tinto advanced 9.76 per cent.

Insurers Aviva and Prudential saw the biggest losses and were down 12.68 per cent and 9.32 per cent respectively.

David Jones, chief market strategist IG Index, warned this does not necessarily signal the end of the bear market: “The problem we have had for the past six weeks has been the unwillingness of investors to believe that rallies were anything other than a dead cat bounce.

“While Friday’s strength is encouraging, markets still remain nervous about the overall outlook for the months to come so we should not be surprised to see some more hair-raising swings before the month is out.”