FTSE reaches 5000 as City confidence grows
The stock market surged through the 5,000 barrier for the first time since last October today.
The FTSE-100 index of leading shares touched 5001.51 —up 54.17 — at 3.15pm in the latest pointer towards growing economic optimism, although it later slipped back.
The FTSE has not traded above 5,000 since early October last year in the tumultuous days after the collapse of Lehman Brothers. The blue chip index last ended a day's trading higher than 5,000 on 26 September.
It signals a remarkable return of confidence since the stock market hit its post-Lehman low of 3512.09 in March. But the index still has far to go before it passes the all-time high of 6930.2 at the end of 1999.
Today's rise comes after a leading think tank said the recession was over and economists were cheered by better-than-expected manufacturing figures.
Potential mergers mooted this week of food giants Kraft and Cadbury, and mobile operators Orange and T-Mobile, also improved the mood in the City.
Strong risers in the market today included energy group BG, up 39p at 1094p, BA, 10.2p higher at 211.3p, and publisher Yell, up 11p at 75.8p.
