FTSE:6,017.54 (+27.78) Mid-250:12,102.27 (+61.99) Small Cap:3,311.38 (+11.80)

UK STOCKS rose for a seventh day yesterday, pushing the benchmark FTSE 100 Index higher than 6,000 for the first time since May, as real estate companies advanced.

The FTSE 100 Index gained 27.78, or 0.5 per cent, to 6,017.54 at the close in London.

The gauge rallied 5.1 per cent last week as Greek lawmakers passed a five-year austerity package, qualifying the country for further aid.

The FTSE All-Share Index rose 0.5 per cent.

“Europe’s public and private sectors have come together to avoid a near-term default in Greece,” Ian Scott, a global strategist at Nomura Holdings, wrote in a report.

“Although such a deal cannot solve the underlying problems, with a high probability of default already factored into Europe’s fixed income and equity markets, it should mean a continued rally in asset prices,” he said.

UK employment creation accelerated in June as insurance and engineering companies increased hiring, according to employment website Reed.co.uk.

The Reed Job Index rose to 125 from 121 in May, the London-based recruitment company said in a report.

A gauge of salaries was unchanged, said Reed, which runs Britain’s largest recruitment website.

British Land, the UK’s second-largest real estate investment trust, rallied 2.3 per cent to 629.5p.

Land Securities gained 1.6 per cent to 880.5p.

Dragon Oil surged 8.4 per cent to 550.5p after FT Alphaville said a Chinese company may make a bid for the explorer focused on Turkmenistan at 700p to 750p a share.

The blog did not say where it got the information.

Cenkos Securities slumped 8.7 per cent to 88p after chief executive officer Simon Melling quit to pursue other interests.

Imperial Tobacco climbed 1.2 per cent after lifting prices across its Spanish cigarette portfolio broadly to pre-price war levels, prompting Citigroup to raise its earnings estimates and target price.

Enterprise Inns, the UK’s second-biggest pub owner, climbed 2.7 per cent to 67.5p as Peel Hunt LLP upgraded its recommendation on the shares to “buy” from “hold”. – (Bloomberg/ Reuters)