Business

FTSE 100 breaks through 6,000 as shares recover

Market trader (file picture) Image copyright Getty Images

(Close): The FTSE 100 broke back through the 6,000 level as a rise in supermarket shares helped to lift the UK's benchmark index.

Having touched three-year lows on Monday, the FTSE 100 closed up 143.73 points, or 2.5%, at 6,017.79.

Shares in Sainsbury's rose 5.2% after research indicated it had increased its market share.

Kantar Worldpanel said Sainsbury's share of the grocery market rose to 16.7% in the past quarter.

Sainsbury's was the only one of the "big four" supermarkets to increase its market share. However, shares in other chains were also higher, with Tesco up 4.4%.

Chris Beauchamp, senior market analyst at IG, said: "The December bounce seems to have started in earnest, as European indices rally and unloved FTSE stocks find some buyers.

"Investors appear to be relatively unconcerned that tomorrow's Fed meeting is still on the calendar, as year-end seasonality kicks in."

In the FTSE 250, shares in software group Aveva plunged 28% after France's Schneider Electric said it had scrapped a planned takeover of the company.

Shares in Carpetright rose 3.5% after the retailer reported rising sales and profits.

Underlying pre-tax profits rose by a third to £9m for the 26 weeks to 31 October, with like-for-like sales at UK stores up 3.7%.

On the currency markets, the pound fell by 0.6% against the dollar to $1.5053, and was up 0.2% against the euro at €1.3796.