FTSE bounces on oil prices and financials

London''s FTSE 100 index bounced back strongly today (July 30th) after a week of caution and sputters.

The blue chip index closed up over 100 points higher at 5420.70, led by moderating oil prices and an overnight bounce on Wall Street.

According to the Associated Press, "financials were in focus" today in London, with Aviva – the second largest insurer in the country – climbing nearly ten per cent to 507.50 on the back of news its profits increased over 12 per cent in the first half of the year.

Insurer Admiral also reported strong profits, ensuring the company''s shares climbed 89 points to 914. Bradford-based financial services firm Provident also saw gains after its profits increased by 34 per cent. It closed up nine per cent at 894.50.

However, the biggest gains were reserved for Ark Therapeutics. The company saw its share price rocket over 68 per cent to 80.25 after it revealed a study showed that its new cancer drug was highly effective.

The upturn in the market was not enough to help lender Lloyds TSB. The bank struggled after it released data showing a 70 per cent drop in first-half profits due to bad loan write-offs. As a result, shares in the company closed down five per cent at 306.

Continuing gloom about the UK housing market hit builders Taylor Wimpey and Barratt. Both firms saw further falls.