After a week in which the stock market looked like it had been hit by hurricane Georges, Footsie was reassuringly resilient yesterday.

Three consecutive three-figure losses followed by a wild 200-point bounce and a volatile session surrounding Thursday's rate cut had left the market winded.

But, yesterday, the equity market rallied and both the tone and turnover hinted at more than a dealer-induced mark-up.

The FTSE 100 index moved upwards from the start of trading, achieved a 120-point gain around lunchtime, eased back, and then made a final run to end the day 124.5 points higher at 4,823.4.

In spite of the week's intense volatility and heavy falls, the blue chip index was up by more than 70 points overall.

The FTSE 250 index improved 37.8, although the SmallCap fell 4.0 to 1,834.5. Earlier this week the SmallCap (excluding investment trusts) was offering a higher income yield than gilts for the first time since 1966.

Yesterday, however, gilts suffered one of their biggest ever oneday reversals. The benchmark 10-year issue fell more than four points at worst and closed three points lower and 30-year bonds ended down more than six-and-a-half points.

Within the market itself, there were signs that some of the big sectoral shifts were beginning to flatten out.

Sectors which have been particularly heavily hit were attracting interest for the first time since the Footsie peaked in July.

The banking sector, which had fallen more than 30 per cent since the peak, was yesterday's strongest with a 4.6 per cent gain. It was helped by big rises in the Asian-related banks which responded to hopes of interest rate cuts in Hong Kong, following the rise in the yen which took the pressure off the former colony's currency.

Banks were followed closely by chemicals and diversified industrials and chemicals, both of which have been devastated by the strength of sterling and the Asian downturn.

Conversely, defensive sectors such as food retailers, gas distribution and the water and electricity companies were all down.