Thursday Lunchtime Market: HBOS gains 10% to take FTSE higher

Blue chip shares had sallied forth into higher territory just after midday, as better than expected results at HBOS and an overnight surge in the price of oil boosted UK markets.

At 12:24pm, the FTSE 100 was up 30.9 points, at 5,451.6, with HBOS gaining over 10% after announcing profits for the first half of the year had come in at £950 million.

Although down significantly compared to last year, they were still ahead of forecasts, with shares in the company subsequently putting on 10.2% or 27.75p, to 299p.

Miners also helped drive up the index after further upgrades from brokers. In particular Antofagasta, the Chilean miner, announced copper production had soared, its shares reacting by moving ahead 5%  or 28p, to 581.5p.

Peers including Eurasian Natural Resources Corporation and Kazakhmys also made gains, moving up 7.5% and 4.8% respectively, to £10.64 and £14.88.

Meanwhile the oil price, which overnight rose to over $126 after gaining $4, boosted oil companies including Tullow Oil and Cairn Energy. Tullow put on 46p or 6%, to 789.5p, while Cairn gained 132p or 5%, to £27.67.

The performance in the US also provided support, after the Dow Jones Industrial Average finished 1.6% higher, at 11,583.69, while the S&P 500 ended up 1.7% ahead, at 1,284.26.

The fallers column was led by BT Group, down 10.6% at 176.4p, after revealing a slump in profits caused by high leaver costs.

Energy conglomerate Centrica, parent of British Gas, also featured after it revealed a fall in operating profits because of lower margins in its retail business.

It was trading down 1% or 3p, at 315p.

The FTSE 250 was enduring a tougher session, up just 1.5 points at 8,887.8.