FTSE 100 rallies to close higher

Tuesday 18th November 2008, 5:24PM GMT.

FTSE 100 rallies to close higher Insurance stocks led a rally on the FTSE 100 to close 1.85 per cent higher.

The index ended the day at 4,208.55, over 76 points higher than yesterday with Friends Provident up 8.59 per cent, Aviva rising 8.58 per cent and Legal & General up 7.54 per cent.

Wolseley, the heating and plumbing supply firm, was up 8.02 per cent after announcing a dramatic cost-cutting plan, including axing over 2,300 jobs.

Trading lower today were HBOS and Lloyds TSB, ahead of a crucial shareholders’ meeting tomorrow which could decide the fate of the banks’ merger.

HBOS shares fell 15.44 per cent, while Lloyds TSB shares were 11.95 per cent lower.

Royal Bank of Scotland shares also fell and were down 6.71 per cent by the end of the day.

Ryan Kneale, market analyst at BetsForTraders.com, said: “Banking stocks are taking a real beating today following Citi’s announcement that over 50,000 jobs will go and the barrage of negative news involving European banks this morning.

“Elsewhere, the situation appears to be no better with retailers and miners also posting steep losses as everyone prepares themselves for a difficult next few quarters.”