FTSE: 5,803.13 (+29.67) Mid-250: 11,861.43 (+81.97) Small Cap: 3,288.55 (+17.48)LONDON'S BLUE chip index closed higher yesterday as banks and retailers gained after a bright start on Wall Street.

The FTSE 100 index added 29.7 to 5,803.1, having gathered momentum in the afternoon as it followed US markets upwards, with mining shares also benefiting from improved investor sentiment.

It was a poor day for commodities powerhouse Glencore, which sank to the bottom of the blue-chip index after it used its maiden results to dismiss reports of major takeover plans.

The group’s chief executive, Ivan Glasenberg, said the company was not “actively considering” a bid for mining group ENRC, sending shares down more than 4 per cent or 23.4p to 500p.

Tesco perked up despite same-store sales declines, excluding VAT and fuel, of 0.1 per cent, which was slightly below market expectations. Its shares rose by 0.1p to 407.3p.

Avis Europe shares jumped 58 per cent – up 114.1p to 310.7p – after Avis Budget announced the acquisition of its European counterpart in a deal that already has the support of major shareholder, Belgium’s D’Ieteren.

The banking sector reacted well to the figures that CPI inflation was stable at 4.5 per cent in May, with Royal Bank of Scotland up 0.9p at 41.5p, Barclays ahead 4.2p at 264.6p, and Lloyds Banking Group adding 0.9p to 48.5p.

Communications giant BT saw shares climb over 2 per cent after its Openreach division revealed its fibre-optic lines would reach 5 million premises by the end of June as part of its £2.5 billion programme to cover more than two-thirds of the country’s homes and businesses by 2015.

The company, which introduced the superfast broadband services last year, saw its shares increase 5.1p at 200.3p.

Away from top flight, fashion retailer Ted Baker yesterday said it would open new stores in the UK and overseas this year after posting another strong performance. The group saw its shares add 8.3 per cent or 62.3p to 813.3p.

The biggest FTSE 100 risers were ITV up 2.85p to 68.2p, Schroders ahead 60p at 1586p, Kazakhmys up 47p at 1282p and International Consolidated Airlines ahead 7.9p at 232.7p.

The biggest fallers were Glencore down 23.4p at 500p, Xstrata off 41p at 1,293p, Imperial Tobacco down 46p at 2010p and ENRC off 15p at 761.5p. – (PA)