After a flat start, the FTSE 100 index UK:UKX +0.37% rose 0.3% to push past the key 6,000 mark at 6,007.80 in late morning trading. The index gained 0.7% on Friday, its sixth positive session, and longest winning streak since the six days ended March 30.
Action for London was muted because of the July 4 Independence Day holiday in the U.S., with Wall Street closed on Monday.
Banks came under pressure across Europe after S&P said two options proposed by the Federation Bancaire Francaise (FBF) to ease repayment terms on Greek debt could constitute a default for the country.
Some U.K. banks are exposed to Greek debt, though French and German exposure is said to be larger.
The news comes after euro-zone finance ministers approved over the weekend the disbursement of the next tranche of aid for Greece, with the IMF expected to approve its part of the loan in coming days. The Greek government secured parliamentary approval for additional austerity measures last week, paving the way for the disbursement of more aid.
Banking shares pared earlier losses, but Barclays PLC BCS +4.02% UK:BARC -1.42% , Royal Bank of Scotland Group PLC RBS +3.29% UK:RBS -1.08% and Lloyds Banking Group PLC UK:LLOY -1.59% still remained some 1% lower, while Standard Chartered PLC UK:STAN -0.66% HK:2888 +3.19% lost 0.8%.
Oilfield-services provider John Wood Group PLC UK:WG 0.00% rose 1.2%, continuing to rise after Goldman Sachs upgraded the shares to buy from neutral on Friday. Among other energy-related stocks, shares of Essar Energy PLC UK:ESSR +1.15% gained 1.2%.
British Land UK:BLND +2.60% rose 1.9% to 627 pence after Deutsche Bank reduced its target price from 840 pence to 820 pence, but said it expects prices to “appreciate considerably” over the next 12 months on expectations for strong growth in net asset value and expected upward re-rating in share valuations. It rates British Land a buy.
Land Securities Group PLC UK:LAND +1.50% rose 1.4%. Deutsche Bank said British Land has better portfolio exposure than Land Securities, but also rates the latter at buy.
Shares of Imperial Tobacco UK:IMT +1.04% rose 1.3% after Morgan Stanley said the tobacco group, which it rates overweight, could lead the industry out of the price war in Spain. It said Imperial Tobacco stands to benefit the most, given its exposure to Spain, if the rest of the industry follows its lead and lifts prices there.
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