Britain's top share index rose on Friday to seal a fourth weekly gain in a row as record metal prices boosted mining stocks, such as copper firm Antofagasta, and as hopes for consolidation boosted property firms, including British Land.
But shares failed to hold onto earlier four-year highs as the dollar's strength - an earlier factor boosting shares such as Anglo-US fund manager Amvescap - faded when European Central Bank chief Jean-Claude Trichet hinted that euro zone interests rates would rise in December.
The FTSE 100 index ended up 38.9 points, or 0.7 percent, at 5,498.9, but some way off an earlier high of 5,531.6 - its best level since August 2001.
Nonetheless, the index has gained just under 3.5 percent this month and almost 15 percent since the start of the year. Dan Bunting, European strategist at Dryden Wealth Management, said the market's rise had caught some people unawares.
"Most people have been insufficiently positive. But there's an enormous wall of cash out there with private equity firms, we've had an excellent profit recovery and share buybacks are boosting earnings per share," he said.
Oil, gas and mining stocks added about 18 points to the FTSE's rise, with several miners touching record prices earlier as copper prices flirted with all-time highs and gold traded near 18-year peaks.
Copper prices have been underpinned by expectations that China cannot get enough metal to cover a trading position that might expose it to losses of $200 million.
The FTSE's only pure-play copper stock, Antofagasta, surged to a record price of 1,722 pence before closing at 1,690p, Rio Tinto set an all-time high at 2,475p before closing at 2,414p, and Anglo American also breached new peaks, touching 1,869p. Its shares closed up 1.4 percent at 1,836p.
Share price target upgrades from Swiss investment bank UBS also boosted sentiment in those stocks.
Oil heavyweights such as BP lent backbone to the advance, even though US crude oil prices languished near five-month lows.
"Before, we were trading BP like a derivative off the oil price, but now if the oil price moves there is less of an immediate read through," one dealer said. "People are not as frenetic as they were before, and a trend will have to show itself for a few days before people trade."
Financials also lent support, with Amvescap notching up a 1.2 percent gain amid persistent speculation it might be taken over. But the stock halved its gains as the greenback - whose strength earlier boosted the dollar earner - weakened against the euro.
Elsewhere in the sector bank Lloyds TSB - a long-mooted take-over target - added 1.5 percent, while emerging market-focused banking group Standard Chartered was the top blue chip gainer, rising 3.2 percent.
Hedge fund manager Man Group rose for the second day to gain a further 2.6 percent after analysts increased their price targets on the stock following its well-received first-half results on Thursday.
Property firm British Land jumped 3 percent, having earlier hit an all-time high of 1,074p, according to Reuters data. Dealers said gains in US property firms overnight had boosted the sector, and analysts have been forecasting further consolidation among UK property and building stocks. Rival Hammerson added 1.6 percent.
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