Analysts look at 6,000 mark for FTSE

The Footsie lifted another 1 per cent to more than 5560, with little sign of an end to the recent bounce back seen amid renewed investor confidence.

Analysts are forecasting the top flight could hit 6000 by the year end in what would be a marked turnaround on the sharp falls seen only a few weeks ago.

A robust half-year earnings season and pick-up in the pace of global merger and acquisition news has helped offset the double-dip recession fears that haunted the market earlier this summer.

The benchmark index has now risen by around 15 per cent after hitting a year low in July and reached 5500 on Friday for the first time in four months.

A rebound yesterday from the banking sector in response to the Basel III rules on capital reserves announced over the weekend added to recovery hopes sparked last week by better-than-expected jobs data in the US.

Analysts at Citi said they were sticking by forecasts for the FTSE to finish 2010 at 6000, while Brewin Dolphin market strategist Mike Lenhoff said the tide of investor sentiment had turned.

"The global economy is recovering – all we've seen is a loss of momentum, not a relapse and it's likely that next year the recovery will continue," he said.

"I wouldn't be surprised if the market did end the year near to 6000."