FTSE ends slightly higher with financials heading the gainers

END-OF-DAY REPORT: Headline shares closed a dull session slightly higher, with investors lacking the assistance of any major corporate activity. Strength in the financial sector balanced out weakness amongst the miners.

At the close of business, the FTSE100 was up 7.48 points at 5,501.64 with the FTSE250 ahead 70.68 points at 10,396.38 and the FTSE Smallcaps 22.05 points better at 2,883.45.

An element of profit-taking after the previous session’s strong gains and a distinct lack of corporate activity, left the markets in London lacking direction today.

However, strength in the financial sector kept the main index in positive territory.

Banking shares put in a mixed performance ahead of the publication of new capital rules next week, with Lloyds heading the sector gainers, up 0.95p at 75.62p, and Barclays the biggest casualty, down 4.25p at 319.1p, not helped by a downgrade to hold at Citigroup.

Fund manager Schroders was in demand, up 20p at 1,421p, while private equity group 3i jumped 7p at 279p and interdealer broker ICAP leapt to the top of the leaderboard, ahead 16.9p at 454.5p.

Insurers were popular, with Aviva the pick of them, up 12.8p at 409.3p. Legal & General gained 1.5p at 97.7p and car specialist Admiral rose 30p at 1,635p.

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BAA said Heathrow airport had its busiest ever August with passenger numbers up 2.5% at 6.5 million, giving British Airways a welcome boost. BA shares added 3p at 233.7p.

Cigarette manufacturers were sought for their safety stock status, with BAT up 21.5p at 2,367p and Imperial Tobacco gaining 39p at 1,945p.

On the downside with blue chips, oil producer BP weakened 3.8p at 411.65p on announcing it will delay Q3 results by a week, while Tullow Oil slipped to the foot of the blue chip league table, down 29p at 1,234p on exploration licence concerns.

Other notable fallers included oil industry services group Petrofac, down 17p at 1,369p, FT publisher Pearson, off 10.5p at 999.5p, and security firm G4S, 3.2p lower at 253.1p.