FTSE forges ahead

After a period of resistance at the psychologically crucial 6,000 level, the FTSE 100 forged ahead to make new five year highs last week, with gains coming as the Bank of England announced another month of unchanged interest rates

Quentin Smith at Old Mutual Asset Managers in the UK says that on the corporate front there were same major structural changes with Severn Trent demerging Biffa, its waste division, and DSG re-branding all Dixons stores as Currys.

The Bank of England left its benchmark interest rate unchanged for an eighth month as economic growth strengthens and inflation holds at target levels.

Over the week the All-Share Index and the FTSE 100 both advanced 1%, with midcaps just behind this and smaller companies marginally ahead.

The strongest sector performances came from basic materials and resources, as underlying commodity prices remained firm, while health care and consumer stocks accounted for the weakest performers.

BP (+3.3% to 683p), the world's second largest oil company, reported a 1.7% decline in first quarter production percent as the pace of growth slowed in Russia.

Oil and natural-gas output was 4.03m barrels of oil equivalent a day, compared with 4.1m in the year-earlier period. Production at the Russia unit, TNK-BP, increased 2.5% compared with 16% a year ago as freezing weather in the period hampered output.