Barclays lifts FTSE 100
Monday 26th January 2009, 5:09PM GMT.
The FTSE 100 ended the day 3.86 per cent higher at 4,209.01, as Barclays shares stormed ahead.
An open letter from the chief executive and chairman of Barclays assuring investors the bank is on track to post a profit ahead of expectations sent shares soaring 73.24 per cent to close at 88.7p.
Shares in Barclays have plunged over the last two weeks on fears the bank planned to raise more capital, hitting a low of 47.3p.
The rally boosted rivals’ shares, with stock in Lloyds TSB Group rising 32.35 per cent to 65.2p and Royal Bank of Scotland shares up 19.83 per cent to 14.5p.
However, many firms on the blue-chip index are still suffering the effects of the recession.
Plumbing supplier Wolseley said first half profit would more than halve amid a housing slowdown and a weak pound, sending its shares 29.81 per cent lower.
Ryan Kneale, market analyst at BetsForTraders.com, said: “After a disastrous last week the markets have opened in better form, with gains in banking stocks, drug makers and energy shares overshadowing news that UK house prices are still falling.
“It appears, for now at least, that bad news is expected but only really bad news will bring the markets down further.”
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