THE FTSE 100 index ended what many in the market regarded as its last trading session under a Conservative government for five years, standing proudly at a new closing high of 4,444.6, up 9.0 on the session.

There were no shocks to the stock market's system yesterday, with trading predictably restrained as traders awaited the first results of the general election.

And business was further restricted by the closure of most European stock markets for the May Day holiday.

Unlike the past few sessions, there was no really dangerous economic news from the US to unsettle London shares.

Other indices were equally subdued, but also made modest progress. The FTSE Mid-250 ended the session 3.4 up at 4,502.1, while the SmallCap index nudged higher, finishing 0.9 firmer at 2,296.3.

London's last minute advance to a new closing peak was all the more impressive given that Wall Street fell back below the 7,000 mark not long after the opening yesterday, when the Dow Jones Industrial Average posted a 60 point loss.

Dealers said the stock market's performance reflected the belief that the election would see the return of a Labour government with a comfortable working majority.

"The last thing the market wants at this stage is a hung parliament, which would bring another 12 months of uncertainty, followed by another election; we're happy with New Labour if it holds its manifesto pledges," said one senior marketmaker.

Another said London was in something of a holiday mood, with blue skies adding to the general good feeling. There was no real reaction to a late slippage in gilts, which finished five to nine ticks higher in the wake of a small sell off in sterling towards the close.

Others were by no means as bullish, pointing to the potential for any bad news on the economy to be instantly thrown into the market by a new Chancellor.