Britain's FTSE 100 share index scored its best close in nearly 4-1/2 years on Wednesday, with mining companies -- the star performers of the year so far -- continuing to rise as copper and gold prices gained.
Kazakhmys -- one of the world's biggest copper miners -- was among top gainers with a 2.2 percent rise, while elsewhere in the sector Anglo American and BHP Billiton tacked on 1.1 percent each.
Stocks in the sector, including Xstrata and Antofagasta, have typically gained 50 percent or more since the start of the year as China's booming economy stoked demand.
The FTSE 100 ended up 27.4 points, or 0.5 percent, at 5,622.8 -- its best level of the day and its top close since August 2001. The index has risen more than 16 percent so far this year, with the recovery gaining momentum as the year draws to a close.
Share buybacks, cash from take-over deals and growing expectations of lower borrowing costs in the UK next year have lifted sentiment.
"This is a set of background features that will hopefully continue to contribute throughout 2006," said Mike Lenhoff, a strategist at private client firm Brewin Dolphin.
The index gathered steam as weaker energy stocks recouped some of their earlier losses, with US crude oil futures resuming their upward path. Shares in BP -- the benchmark's biggest stock -- closed a fractional 0.1 percent lower at 621p, having earlier dipped to 610-1/2p.
Broader market sentiment was also boosted by news that US consumer confidence improved in December, signalling the resilience of the world's largest economy.
Data from UK department store group John Lewis and an independent compiler Footfall added to confidence that the key Christmas trading period had got off to a good start.
From both ends of the spectrum, luxury brands firm Burberry added 2.3 percent while discount retailer Matalan gained 3 percent.
Among blue chips, Marks & Spencer gained 1.2 percent, trading above 500p for the first time since 1998, while DSG International rose 0.9 percent.
Utilities and media stocks were also buoyant as traders said those sectors looked ripe for take-over action in 2006. Severn Trent added 1.9 percent, while telephone directories publisher Yell ticked up 1.6 percent.
Dealers added that some investors were turning once again to the media sector after a period of sustained underperformance.
Brewin Dolphin's Lenhoff said banks may also prosper in 2006.
"We've seen about three years on the trot of underperformance. If the retail sector does well because there is less concern about consumer indebtedness and if interest rates remain stable and the housing market looks steady...it will stabilise the picture for the banks," he said.
Pharmaceutical stocks were another focus, with AstraZeneca up 1.3 percent after signing a $300 million research and licensing deal with Targacept, aimed at developing a treatment for Alzheimer's disease and other disorders.
On a thin day for corporate news, shares in Cadbury Schweppes added 2.2 percent, boosted by news that the world's biggest confectionery group had sold its US-based Holland House brand of cooking wines to food maker Mizkan Americas for $37 million in cash.
On the downside, telecoms group BT and pubs operator Enterprise Inns dipped as their shares traded ex-dividend.
Volumes were thin at less than 1 billion shares by 1643 GMT, with many investors still away for the Christmas break.
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