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Last Updated: Friday, 13 October 2006, 16:10 GMT 17:10 UK
FTSE advances to five-year high
Graph of the FTSE 100 from 2001 to 2006
London's blue-chip FTSE 100 stock index has risen to a five-year high, the latest global market to benefit from profits optimism and lower oil costs.

The FTSE-100 index added 36 points, or 0.6%, to 6,157.3, its highest close since hitting 6,197.9 in February 2001.

Global markets have recovered from a slump earlier this year when crude prices jumped and there was a nuclear stand off between the US and Iran.

Wall Street has set new highs in past weeks, while Asian indexes also are up.

Analysts said more gains were possible, though warned against overoptimism.

"Some of the big issues which have weighed on investors' minds over this year have started to dissipate," said Henk Potts of Barclays Stockbrokers.

"There is talk about [reaching] 7,000 [points] by the end of the year, but we would say it looks optimistic at the moment although prospects are still good," he added.

Different drivers

The UK has been benefiting from strong earnings growth in sectors such as banking and commodities.

On Thursday in London, mining stocks including Kazakhmys and BHP Billiton were lifted by tin prices hitting 17-year peaks.

The FTSE also got a lift from gains in oil companies after the price of crude, which has dropped more than 20% in the past months, rebounded.

BP climbed 1.4%, while Shell added 0.3%.

On Wall Street, the Dow Jones Industrial Average closed at its highest mark since 2000 earlier this month.

Key markets around the world also have been bullish, with India's Sensex index closing at a record high of 12,746.75 on Friday.


SEE ALSO
India's Sensex hits record high
13 Oct 06 |  Business
FTSE 100 index ends above 6,000
05 Oct 06 |  Business
Dow Jones closes at record high
03 Oct 06 |  Business

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