FTSE 100 closes at six-year high

The FTSE 100 is at a six-year high

The FTSE 100 closed at a six-year high on Friday, buoyed by strong gains in the banking sector and merger rumour surrounding two investment companies.

London's main share index, the FTSE 100 closed up 36 points to 6,383, its highest finish since December 2000.

Man Group was the biggest riser, gaining 3.6% on rumours it may merge with fellow investment firm Amvescap.

Amvescap was the third biggest climber, adding 3%. Neither firm was immediately available for comment.

Engine-maker Rolls-Royce was the second-biggest riser, gaining 3.03% a day after it secured a number of broker upgrades on the back of a strong trading update.

Banking shares made up a quarter of the biggest risers on the FTSE 100, with traders saying they were benefiting from the Bank of England's decision on Thursday to keep interest rates on hold at 5.25%.

Standard Chartered was the highest-rising bank, its shares gaining 2.2%, while Northern Rock added 2.1%.