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FTSE 100 closes strongly, back above 6,600

Last updated: 15:47 10 Nov 2014 GMT, First published: 16:47 10 Nov 2014 GMT

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Britain’s top share index surged towards a five-week high on Monday buoyed by more gains on Wall Street.

FTSE was up 44 points at 6,611, a 0.7% rise, at the close.

Troubled Tesco (LON:TSCO) moved in the right direction, ending the day as the biggest riser on the benchmark gauge, up almost 4.5%.

Broker Bernstein Research turned positive on the business and said it was less likely now the supermarket group would need a cash call, while cutting costs and prices would fix many of its problems.

By contrast, Sainsbury (LON:SBRY) led the fallers, down 3%. 

The supermarket, which releases its interims on Wednesday, is reportedly preparing to cut its dividend and abandon a programme of store openings in a bid to cut costs and free up resources to fight fast-growing budget rivals.

Cantor Fitzgerald cut its target price, saying: “Our view that the full year dividend will be cut to 12p and investors will need further reassurance on full year profits and the UK trading strategy.”

Mining majors were mixed as commodity prices rebounded.

Fresnillo (LON:FRES) gave up early gains to finish 1p to the good at 735p, while BHP Billiton (LON:BLT) (LON:ANTO) eased lower after a strong start.

Even so, the blue chip index closed strongly and hit the 6,600 mark during afternoon trading. 

FTSE250-listed Serco Group (LON:SRP) was the big story of the day.

The troubled outsourcing firm is planning a £550mln rights issue, has cut its profit forecast for this year and next and has identified £1.5bn of impairments. Shares crashed by almost a third to 215p

Shares in the UK’s three main Kurdistan-focused explorers were given a boost by news that the regional government is about to start payments for oil exports. Gulf Keystone Petroleum (LON:GKP) led the pack with a 11% rise, while Genel Energy (LON:GENL)  was up 8% and Afren(LON:AFR) 0.4% ahead.

On Friday the Kurdistan Regional Government (KRG) said it would pay an initial US$75mln to producers.

Quindell, (LON:QPP) the insurance claims processor, was back in the headlines over a complex loan agreement involving directors.

It upset the market and caused a 19% fall in the share price to 96p even as the company put out a statement clarifying the situation. The share price was more than 650p in February.

In the AIM world, Weatherly International (LON:WTI) was the biggest faller, down 19% after a share subscription deal with Polo Resources (LON:POL) raised £900,000.

Investors in drinks distributor Distil (LON:DIS) enjoyed a bumper start to the week. 

Shares soared 129% after it signed up a raft of new distribution outlets, including Mitchell & Butlers’ Pubs, for its rum and vodka products in the UK.

Berkeley Resources (LON:BKY) jumped 15% on additional high grade mineralisation at the Zona 7 deposit at its Salamanca uranium project in Spain.

Uranium prices have been on the rise recently following Japan giving the go ahead for the Sendai nuclear reactor to re-start.

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