LONDON (AFP) - The FTSE 100 ended firmly in positive territory after the index received a boost from a rally on Wall Street, a strong performance in financials and an easing of crude oil prices, dealers said.
At the close of trade Friday, the FTSE 100 was up 88.8 points at 4,659.6, below the highest level of the day of 4,663.9, with the broader indices also higher.
Volume was solid, with 2,819.9 million shares changing hands in 241,801 deals.
Vodafone was the most traded stock, with 337 million shares being exchanged, followed by Shell who saw 65.3 million issues switch owners.
Over on Wall Street, the DJIA rallied 108.4 points to 10,188.7, while the Nasdaq was up 38.92 points at 1,935.76 at the time of the London close.
A raft of benign economic data and positive broker comment in the technology sector spurred the major US indices higher.
The ISM index fell to 58.5 percent in September from 59.0 percent in August. The decline was in line with expectations.
However, consumer sentiment eroded more-than-expected in late September -- down to 94.2 from 95.8 earlier in the month -- according to the University of Michigan.
On a more positive note, construction spending in August rose by a better-than-expected 0.8 percent, the Commerce Department said.
Crude-oil futures slipped back toward 49 US dollars a barrel as a ceasefire between rebels and troops in Nigeria, a key world oil producer, continued to hold.
November crude was down 29 cents at 49.35 dollars a barrel in New York.
In Britain, Reuters led the FTSE 100 leaderboard, adding 4.82 percent to close on 326-1/2 pence per share, followed by Royal and Sun Alliance.
Financials led the way, with Royal and Sun rising 4.55 percent to 74-3/4 on news it has completed the sale of Codan, its Danish Life operation.
Man rallied 46 pence to 1,235 as the shares continued to rebound after Wednesday's disappointing trading update, further helped by news of director share buying and the announcement of a share buyback programme.
Meanwhile, Northern Rock was the focus of much of the attention after the group issued an upbeat trading statement.
Merrill Lynch reiterated its 'buy' stance, as did Dresdner Kleinwort, while Cheuvreux kept the shares as 'outperform.'
Shares in Northern Rock jumped 25 pence to 735.
The positive outlook lifted sector peer HBOS by 19 pence to 765.
Away from financials, telcos were a key feature in the FTSE leaderboard, led by Cable and Wireless -- up 3-1/2 pence at 101-1/4.
Dealers said UBS thinks the shares are beginning to show value at current levels, and they also noted hopes of a sale of the group's Japanese operations.
Meanwhile, Vodafone rose four pence to 136-1/4 on continued buying following Monday's strategic review.
mmO2 was up 2-1/4 pence to 100-1/2 after CSFB raised its price target on the stock to 100 pence.
News of an easing of oil prices helped British Airways -- up 7-1/4 to 214-3/4 -- and ICI -- up eight to 219 -- to stage a rally.
There were only two losers among the blue chips, one of which was Sainsbury.
The beleaguered retailer fell 0.29 percent to 254 amid cautious broker comment ahead of the group's upcoming strategic review on October 19.
UBS lowered its target on the stock to 250 pence from 265 and reiterated its 'neutral' stance.
"We expect the Strategic Review to involve an effective downsizing of the company's asset base as surplus properties are closed and sold with cash reinvested into the business," the Swiss broker said.
Panmure was also negative and advised clients to 'sell' the stock, saying it expects a profit warning.
Bookmaker William Hill fell 0.47 percent to 531 pence per share at the close.