FTSE 100 closes at highest level since May 2008

The FTSE 100 closed at its highest level since May 2008 yesterday as investors continued to snap up cyclical names, including the UK's semi state-owned banks.

The blue-chip index rose 0.74% to 6,098 and surpassed its 2011 peak of 6,091 seen in February. Among the winners were Lloyds Banking Group, up 4.94% at 53.27p, as well as peer Royal Bank of Scotland which was 3.83% firmer at 349.90p. The banks helped counter falls at insurer Aviva - down 2.15% at 373.70p after an earlier fall of 2.5% amid fears over its dividend - as well as at Imperial Tobacco which was off 1.4% at £24.39 early in the afternoon but since regained some ground. The UK's leading index has enjoyed a boost since late December, rising about 4%. It has been helped hig...