FTSE ends up 1.5 percent

By Simon Falush

LONDON (Reuters) - The FTSE ended 1.5 percent higher on Monday, lifted by gains in commodity stocks, which offset a dip in embattled banking stocks that were pressured by worries about Barclays' (BARC.L) fundraising.

The FTSE 100 .FTSE closed up 65.94 points at 4,443.28, its fifth consecutive day of gains, its longest run in the black since December 2007.

The index gained 12.7 percent last week, its strongest week on record, fed by anticipation of a widely-expected interest rate cut from the Bank of England later this week, although it was down 10.7 percent in October.

Miners were among the top performers on the FTSE 100 .FTSE as improved risk appetite saw investors buying into the heavily sold sector, even as metals prices dipped, with Kazkhmys (KAZ.L) the biggest gainer, surging 18.3 percent.

"The general view for commodities is that maybe the stocks are oversold," said Peter Dixon, UK economist at Commerzbank. "There's still sufficient fat on corporate bottom lines to ensure they're still going to be in a fairly healthy position."

Xstrata (XTA.L) added 10.3 percent while Vedanta Resources (VED.L) added 7.3 percent. Lonmin (LMI.L) fell 3.4 percent after the platinum producer advised unions of possible lay-offs due to a big drop in demand for the metal for car makers.

Rio Tinto (RIO.L) added 1.3 percent, after the company said its new ilmenite project is on track to produce and the company sees most of its projects in a strong position to weather any economic scenario.

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