UK stocks: FTSE 100 index adds 1 pct
UK stock closing: A surge in Barclays' shares led Britain's benchmark index past the psychologically important 6,300 level on Tuesday, as the blue chip bank's planned overhaul raised hopes for the troubled sector's revival.
Barclays gained 8.4 percent, leading FTSE 100 gainers and adding over 12 points to the index alone, after unveiling plans to slash annual costs by up to 2 billion pounds ($3 billion).
The bank plans to prune its investment bank and axe at least 3,700 jobs. It also raised its dividend and reported a 26 percent rise in adjusted pretax profit for 2012.
"They're not going to change things overnight - it's a huge overhaul. But they are taking things on board and pushing them in the right direction," said Richard Curr, head of dealing at Prime Markets, adding that technical factors supported Barclays' surge.
"We were looking for a firm break of the (January) high at 307p, and once it got up to 310p by mid-morning, it was clear that it was breaking out."
The stock hit 325p for the first time since February 2011, and was the most heavily traded stock in the index, trading over three times its 90-day average volume.
Lloyds and Royal Bank of Scotland were the second and third biggest gainers, rising 5.1 percent and 4.1 percent respectively, with traders citing the implications of the Barclays news for a sector seeking to reassure investors after years of crisis.
The FTSE 100 closed up 61.32 points, or 1 percent higher, at 6,338.38 points, with banks alone adding
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