AN attempt by market makers, caught grievously short of stock in recent sessions, to drive the British equity market lower yesterday came unstuck after a sudden burst of strength in gilts and a strong rally on Wall Street.
A sharp reversal of sentiment in gilts, amid a series of rumours about a reentry of sterling into the Exchange Rate Mechanism, plus another startling show of strength on Wall Street, saw the FTSE 100 index suddenly bound ahead.
It finished an erratic trading session 42.9 stronger at a record intraday and closing high of 4,580.4. That performance extended the Footsie's run of gains to eight consecutive sessions, during which it has risen 210.7 points, or 2.3 per cent.
The closing performance was in sharp contrast to sentiment for much of the day. Marketmakers marked prices lower in the wake of a steep slide on Wall Street on Wednesday and following another profits warning from BTR, Britain's biggest conglomerate by market capitalisation.
The burst of strength in the leaders did not follow through into the secondliners and smaller stocks.
The FTSE Mid250, which has stubbornly refused to match the FTSE 100 index's lead over the past eight sessions, fell 8.6 to 4,510.4.
