Shares make gains after modest start

END-OF-DAY REPORT: Headlines shares made strong gains, the broad-based rally gathering pace in the afternoon as Wall Street headed sharply higher, with Cable & Wireless Worldwide again heading the blue chip leaderboard.

At the close of business, the FTSE100 was up 141.19 points at 5,366.41 with the FTSE250 ahead 235.75 points at 10,060.89 and the FTSE Smallcaps 28.89 points better at 2,815.58.

LONDON MARKETS

Entering September, a notoriously difficult month for investors, trade in London was confident and positive, despite a worse-than-expected PMI Manufacturing reading for August, and gathered pace as US markets bounded higher in morning trade.

The leisure industry fared well, while the retail sector also enjoyed an encouraging day with DIY store operators and the supermarkets picking up.

In the Midlands, the Islamic Bank of Britain made gains , while nightclub operator Luminar Group benefited from the boost to the leisure sector .

Coleshill-based Accident Exchange endured a difficult day, seeing more than 67% of its share value wiped out after it announced talks over a restructuring of its existing £40m credit facility to extend the current repayment date beyond the end of the month were progressing.

Manufacturers Metalrax and Manganese Bronze were also down, as was Norman Hay following shareholder approval of its delisting from AIM . 

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