FTSE ends 1.8 pct higher

By Tricia Wright

LONDON (Reuters) - London's top share index closed 1.8 percent higher on Monday, boosted by stronger energy and mining stocks, while financial shares also provided support to the market which had fallen in five of last eight sessions.

The FTSE 100 .FTSE ended 74.96 points higher at 4,202.13, after falling 0.8 percent on Friday to its lowest close since April 28. It still risen 21 percent since touching a six-year low in March, but is down 5.2 percent for the year.

Trading was lacklustre, with volumes reaching just 67 percent of the average of the last 90 trading days.

"We still think (the FTSE 100) is in a fairly tight trading range between about 4,000 and 4,400 and there's been nothing really to suggest that there's going to be a sustainable break through that upper resistance level," said Tim Whitehead at brokerage Redmayne-Bentley.

Banks advanced, rebounding from falls earlier in the session, aided by gains in U.S. financials after influential bank analyst Meredith Whitney, who recently founded her own advisory firm, upgraded Goldman Sachs (GS.N) to "buy" from "neutral" and gave a reassuring assessment of the sector's performance.

Bank of England Deputy Governor Charles Bean said central bank policymakers were monitoring the situation to see whether more needed to be done to boost the economy, although things were heading in the right direction.

Barclays (BARC.L), HSBC (HSBA.L), Standard Chartered (STAN.L), Lloyds Banking Group (LLOY.L) and Royal Bank of Scotland (RBS.L) added between 1.1 and 2.9 percent.

Friends Provident FP.L was the top gainer, adding 12.6 percent after the life insurer rejected a takeover proposal from Resolution (RSL.L), which fell 2.8 percent.