The London stock market continued its rebound from the terrorist attacks with the FTSE 100 index ending the week with its fifth successive gain. By the close, the blue chip benchmark had risen 139.8 to 4,903.4. That represented a gain of 10.6 per cent on the week and left the index just 130 points below its close on September 10th, the day before the attacks on New York and Washington.

The absence of any further attacks, or indeed any US military action in Afghanistan, seem to have helped investors regain their nerve. The economic effects of the attacks are also being assessed and yesterday's data from the US were generally perceived as positive. Second-quarter GDP growth was revised up slightly from an annualised 0.2 per cent to 0.3 per cent. The Chicago purchasing managers' index rose unexpectedly to 46.6, from 43.5 in August, although many analysts had expected a drop.

And the Michigan survey of consumer confidence showed a drop to 81.8 from 91.5 in August. That was its lowest level in eight years but was better than many analysts had forecast.

Wall Street's recovery late on Thursday gave the London market a lift in early trading and the further rally in the Dow supported UK shares during the afternoon.

The Techmark advanced 9.13 to 1,153.02. Over the week, the 250 gained 6.6 per cent, the SmallCap 5.3 per cent and the Techmark 8.3 per cent. Despite the rally, there is still plenty of evidence that a slowing global economy is acting as a drag on corporate profits.

Cordiant, the advertising group, saw its shares fall 37 per cent yesterday on the back of a profit warning. There was also a round of poor results and gloomy trading statements in the smallcap sector. Some analysts feel that the recent rally in the UK market has been justified on valuation grounds.

Turnover was healthy, with 2.26 billion shares traded by the 6 p.m. count.

But as the markets have rallied, activity has subsided from the frantic levels seen last week, when four billion shares were traded in one session.