Wednesday Lunchtime Market: Loser Lloyds can't stop FTSE rising

The FTSE 100 was ahead by over 1% after midday with shares boosted following a positive day on Wall Street and a round of pleasing updates from blue chip companies.

The index had put on 55.9 points to stand at 5,375.1 by 12:45pm, with a variety of companies including drinks can maker Rexam and insurer Aviva propelling stocks higher despite a higher than expected decline at Lloyds TSB which revealed writedowns of £585 million.

Rexam, the world's second largest consumer packaging company, topped the board after revealing a 61% increase in first half pre-tax profits.

Having added that its second-half performance would also be strong, shares in the company were up 9.4% or 32.75p, to 380.25p.

Meanwhile Aviva jumped 7.3% or 34.25p, to 501p, after unveiling a solid set of results showing profits had climbed 12% in the first half of the year. The company also announced a deal to re-allocate surplus cash to policyholders in two of its with-profits funds.

Completing a round of positive updates, insurer Admiral was also higher, up 6.7% or 55p, at 880p, having beaten expectations for the first half of the year after growing profits to £100.3 million.

Sentiment was also helped by the US, where the Dow Jones Industrial Average and the S&P 500 both closed up 1.5% ahead last night.

While some stocks enjoyed a day in the sun, major banks spread yet more woe, in particular Lloyds TSB. The group fell 6.7% or 21.5p, to 299.5p, after announcing a decline in profits of 70% to £599 million. The main cause of the slump was writedowns, with an additional £170 million hit taken because of the group's monoline exposure.

Mortgage lender HBOS was also sliding, down 4.1% or 11.25p, at 261.5p.

The FTSE 250 was marginally ahead, up 49.3 points at 8,780.7 points, financial stocks featuring among the risers. Among them, Provident Financial, the consumer lender, was ahead by 5.4% at 864p, after reporting a 34% rise in half year profits.