FTSE rebounds from three-year low

By MoneyhighStreet Staff. Published on September 30, 2008 This post currently has no comments.

City of London
UK blue chip stocks rebounded today after hitting a three year low yesterday.

The benchmark FTSE 100 advanced 83.68 points to close up at 4,902.45.

Meanwhile the broader FTSE 250 gained 95.28 points to 7,888.21 and the FTSE All-Share index was up 39.09 points to 2,483.67.

Among the day''s largest gainers were mining giants Rio Tinto and Xstrata, both of which benefited from investors supposition that the falls the companies suffered yesterday meant that prices for their stocks did not reflect future demand for the metals they produce.

Also improving was Bank of Ireland and Anglo Irish Bank, which had been buoyed by the announcement from the government that it will guarantee all savers deposits and bonds should the nation''s lenders fall victim to a collapse.

However, losses for other financials including HBOS pared the gains, with the firm falling by 13.8 per cent to finish down at 122.4.

Also down was Marks & Spencer which lost 6.75 pence, or 3.24 per cent.