FTSE ends session higher on oil

By Atul Prakash

LONDON (Reuters) - The top share index ended 1.7 percent higher on Monday, with oil stocks gaining on a record high crude price and miners, led by Anglo American (AAL.L), advancing on firmer metals.

The FTSE 100 .FTSE index closed 96 points higher at 5,625.9, but finished the first half of the year nearly 13 percent lower after five years of gains in a row.

The index slipped 7 percent in June and fell 1.3 percent in the current quarter, against a drop of 0.2 percent and a rise of 4.8 percent respectively last year.

"The market is readjusting. We are in a new environment where profits are expected to be lower because the activity is lower," said Neil Parker, market strategist at Royal Bank of Scotland.

"It's just trading within a range that has been formed in the downtrend," he added.

Shares have suffered mainly due to an uncertain economic outlook and inflationary concerns following surging crude prices that rose above $143 a barrel earlier on Monday. Banking and housing sectors continued to struggle, with recent surveys pointing towards a poor outlook.

Housebuilder Taylor Wimpey (TW.L) ended flat after losing around 5 percent after the FTSE 250 .FTMC listed company said it was in talks with shareholders and other institutions about raising additional financing, which would most likely be via a placing and open offer.

Among peers Barratt Developments (BDEV.L) lost more than 9 percent, while Bellway (BWY.L) fell 3.8 percent.