FTSE closes at 4319.35
Updated on 29 December 2008
A rise in oil prices saw the FTSE 100 index close up 102.76 points at 4319.35.
City trading volumes remained subdued with many companies closed until the New Year, but the market was pushed higher by oil prices, which spent much of the day above the $40 a barrel mark.
The cost of crude was up amid fears that fierce clashes between Israel and Hamas in Gaza could threaten crude supplies from the Middle East.
Oil prices fell back to around $39 a barrel in late session trading, but this failed to hold back advances in an otherwise quiet day for corporate and economic news.
Bank shares and oil majors BP and Royal Dutch Shell were among the biggest risers, with miners also higher as commodity prices firmed across the board.
But the pound was suffering again as attentions focused on the UK economy and further expected interest rate cuts.
Sterling inched yet closer to parity with the euro, at a record low of 1.02 euros to the pound.
And the Chartered Institute of Personnel and Development (CIPD) warned 600,000 workers are facing redundancy, adding that when the recession ends, more than a million jobs could have been lost in the UK.
Retailers put in a mixed performance with news of yet more casualties in the sector.
Fashion retailer USC went into administration, putting around 300 full-time and part-time jobs at risk and affecting 15 of the group's 58 shops across the UK. A deal with the administrators saw 43 of the stores sold, safeguarding the remaining 1,127 jobs at the high street chain.
Childrenswear firm Adams also confirmed it was poised to become the next high street failure after one of its creditors made an application to appoint administrators for the chain.
High street stalwart Marks & Spencer dropped 3.25p to 210p amid the gloom, although top flight supermarket group Morrison was up 3p at 278.25p.
BP and Royal Dutch Shell shares saw gains of 3 per cent, up 18.25p to 514.25p and 48p to 1701p respectively.
Other commodity stocks benefiting from the oil price moves included mining group Anglo American, up 86p at 1506p.
Royal Bank of Scotland, which is 58 per cent owned by the UK Government, topped the risers board with shares up 12 per cent.
Winners: RBS up 6p to 48.7p, Standard Chartered up 54p at 809p, Cairn Energy ahead 134p at 2025p and Old Mutual up 3.5p at 53.5p.
Losers: Liberty International down 30.25p to 469.75p, followed by Hammerson down 30.5p to 527.5p, Schroders off 36p at 655p and AMEC down 19p at 470p.
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