Banks gain after technical fault on index

Banks listed on the London Stock Exchange (LSE) FTSE 100 index were the day''s main risers at the close today.

Standard Charter posted the biggest gains, rising 128 points to close at 1502.00 pence per share, with HSBC and Barclays trailing in its wake, both gaining 49.50 and 37.75 points respectively.

HBOS closed at 307 pence per share having gained 31.50 points, while Lloyds and Royal Bank of Scotland both closed up 31.00 and 24.75 points.

The gains are largely due to the announced bail out by the US government of giant mortgage lenders Fannie Mae and Freddie Mac, responsible for the purchase and guarantee of most US home mortgages.

Busy trading in the morning on the FTSE 100, which saw it rise to 5,440, even resulted in a near two hour suspension at around 09:15 BST due to a technical problem.

Speaking to Bloomberg, Sejal Patel, a London-based trader at CMC Markets, commented: "Today''s meltdown from the LSE couldn''t have come at a worse time."

He added: "It has served to highlight the benefits of having an additional exchange."