FTSE: 6,091.33 (+40.30) Mid-250: 11,830.54 (+19.47) Small Cap: 3,309.95 (+8.56)

BRITAIN’S LEADING share index jumped higher yesterday, ending at levels not seen since May 2008, supported by rallies from banks and miners, and by gains in energy issues following results from BG Group.

At the close the FTSE 100 was up 40.30 points, or 0.7 per cent, at 6,091.33, its fifth gain in the last six trading sessions.

Banks were higher, led by part-nationalised Lloyds Banking Group up 2.1 per cent, sidestepping news that Britain has slapped an extra £800 million tax on lenders.

The British government said yesterday it would impose the full amount of a planned levy on bank balance sheets this year instead of phasing it in.

“It is likely to remain more of a political football than one actually affecting investors’ views towards the major UK banks,” said Ben Critchley, a sales trader at IG Index.

Integrated oils also lent their strength to the blue chips, led by BG Group which gained 2.1 per cent after posting forecast-beating fourth-quarter results.

Miners rallied after early falls, with African Barrick Gold up 3.4 per cent as the gold price rose on short-covering, and as a surprise rate hike from top commodity consumer China was shrugged aside.

“The move by China to hike interest rates...is a move to curb spiralling inflation and normalise growth, not impede it,” said Joshua Raymond, market strategist at City Index.

Xstrata gained 1.7 per cent after the miner beat forecasts with an 86 per cent jump in full-year profit on stronger commodity prices. It gave a positive outlook for 2011 and set its final dividend at 20 cents.

Engineer GKN was the top blue chip gainer, up 5.6 per cent, reflecting strength in European car-makers ahead of upcoming sector results, and vague underlying bid speculation, said traders.

Smiths Group, ahead 2.1 per cent, also saw a return of bid chatter, with US firm Honeywell once again seen as a possible predator.

Inmarsat added 3.6 per cent as Harbinger Capital Partners sold its remaining stake in the satellites operator.

Marks Spencer rose 3.8 per cent after poaching Tesco’s Laura Wade-Gery to head up its internet business.

Tesco fell 1.5 per cent on the move. – (Reuters)