Footsie buoyed by firmer prices for technology and energy stocks

FTSE:6,069.36 (+51.06) Mid-250:11,869.44 (+58.96) Small Cap:3,271.62 (+6.01)

UK STOCKS climbed yesterday, with the benchmark FTSE 100 Index extending last week’s advance, as technology shares and oil companies gained and a report showed US consumer confidence rose more than forecast in April.

The benchmark FTSE 100 Index rose 0.9 per cent to 6,069.36 at the close in London. The measure has risen 8.4 per cent since hitting its 2011 low on March 16th as investors speculated that the global economic recovery will withstand Japan’s March 11th earthquake and popular revolts in the Middle East and north Africa.

The FTSE All-Share Index added 0.8 per cent yesterday.

“The earnings season is still a good argument for a rise in equity markets,” said Robert Halver, head of research at Baader Bank in Frankfurt.

“Central banks will do everything they can to avoid problems for banks. Any kind of restrictive monetary policy is impossible as it would destroy the system,” he said.

The Federal Reserve began a two-day meeting yesterday and will decide whether to continue with its planned $600 billion of bond purchases through June.

The US central bank is also forecast to leave its target rate for overnight lending between banks at zero to 0.25 per cent, according to all 82 economists surveyed by Bloomberg News.

ARM, the designer of chips that help power Apple’s iPhone, rose 3.4 per cent to 625.5p.

BP climbed 0.8 per cent to 464.20p. Shell, Europe’s biggest oil company, added 1.2 per cent to 2,290.5p.

Oil for June delivery dropped 31 cents to $111.97 a barrel on the New York Mercantile Exchange.

Heritage Oil surged 5.3 per cent to 257.2p, the biggest gain in more than five weeks, as the oil explorer said it will spend as much as $100 million to buy back shares.

GlaxoSmithKline and Barclays, both due to report earnings in the next session, added 1 per cent each.

International Airlines climbed 4.5 per cent as UBS named it the top pick among flagship carriers, saying shares in European airlines could rise if the oil price stabilised and recent trends in capacity started to come through.

Vodafone rose 2.3 per cent, adding about 8 points to the FTSE, rebounding from Thursday’s falls when the stock was hit after Dutch peer KPN cut forecasts. – (Bloomberg/Reuters)