£33bn added to Footsie firms' value

Last Modified: 14 Oct 2008
Source: PA News

Another £33 billion was added to the value of UK blue chips as London's leading share index extended its relief rally.

But investor profit-taking saw early session gains pared back, to leave the FTSE 100 Index up 3.2%, to close 137.3 points higher at 4394.2.

The Footsie had soared by as much as 6.5% at one stage, coming after a more than 8% surge seen the previous session following the UK's £37 billion banking bail-out and similar global action to end the stock market turmoil.

The Dow Jones Industrial Average also gave back some of its 400-point opening surge as investors looked to take profits after the record-breaking rise.

Other markets across Europe posted further gains, including Germany's Dax and the CAC 40 in France, both of which rose by 2.7%.

In London, high street bank Barclays was the top-performing blue chip company, with a rise of 14%.

Anthony Grech, market strategist at IG Index, said that while the market had enjoyed another positive day's trading, the high volatility suggested further falls could be on the horizon.

"Traders were always a bit twitchy that the strength seen so far could be just a flash in the pan and at the moment they still seem as willing as ever to head for the exits on the first sign of weakness," he said.

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