London shares stayed in positive territory on Thursday as traders reacted to news that Britain avoided a triple-dip recession.
The London’s FTSE 100 index of leading companies rose 0.17 percent to 6,442.59 points.
Sterling shot up against the dollar and euro after official data showed Britain avoided slipping into its third recession since the 2008 financial crisis.
The pound shot up to $1.5439 from $1.5264 at 5.29pm, and to 1.1872 euros from 1.1730 euros at the same time on Tuesday.
Traders were encouraged after figures from the Office of National Statistics showed the economy grew by better-than-expected 0.3 percent in the first quarter compared with the final three months of last year.
Spreadex trader David White said the GDP data “is certainly reason for celebration” for the broader economy.
However, the analyst urged caution from reading too much into one set of figures.
“Market participants are reminding investors of how what really matters for equities is not necessarily an increase in output but the availability of liquidity,” he said.
On the company front, a rebound in the price of gold helped push Randgold to the top of the FTSE 100 leaderboard. The precious metal miner saw its shares rise by 270 pence — or 5.35 percent — to close at 5,315 pence.
The Chilean-based miner Antofagasta was also in demand and the copper producer saw its share price go up by 42 pence — or 4.61 percent — to close at 953 pence.
Unilever was the biggest faller as the consumer group spooked investors by reporting tough market conditions in its developed markets. The announcement pushed Unilever shares down by 85 pence — or 2.99 percent — to close at 2,760 pence.
Admiral Group was also in retreat, down by 2.15 percent — or 29 pence — to close at 1,320 pence after the insurance giant reported falling revenues in the first three months of 2013.
Shares in Lloyds Banking Group (LBG) remained the most traded blue chips, seeing 159 million units change hands, followed by Vodafone with 99.30 million shares switching owners.
FTSE ends higher on GDP figures
