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Barclays bounces back to lead the market rally

BARCLAYS is sitting pretty at the top of the UK&rsquo;s rebounding stocks over the last three months, new figures from Motley Fool (Fool.co.uk) showed yesterday.<br /><br />The bank&rsquo;s share price has soared from 61p on 9 March to 281p as of Monday&rsquo;s closing price, a gain of 360 per cent, as UK lenders began to claw back the losses incurred amid the banking crisis.<br /><br />The surge in its stock has been mirrored by a broader rally in the FTSE 100, which has soared 28 per cent from its March 2009 lows over the period.<br /><br />Royal Bank of Scotland, which plunged to 19p in March following a nightmare 2008 which saw it lose a UK record &pound;28bn, was back up to 47p, a gain of 147 per cent. But banking stocks were not the only ones to stage such a dramatic recovery, but mining firms have also enjoyed happier times. Iron miner Ferrexpo and copper specialist Kazakhmys enjoyed huge rallies, up 244 per cent and 192 per cent respectively.<br /><br />Other star performers included insurer Legal &amp; General, up 200 per cent from 23p to 69p after markets realised it was oversold and housebuilder Taylor Wimpey, whose stock was up from 13p to 37p, a 184 per cent bump.<br /><br />The fund managment arm of insurer Legal &amp; General said yesterday that the market rally was likely to continue for another two months.<br /><br />Equity strategist Georgina Taylor said the markets were undergoing an &ldquo;extended rally&rdquo; but warned that continued improvement would rest on economic data. &ldquo;Historically, equity markets start to price in the turn in the economic cycle about two quarters before the data starts to improve,&rdquo; she said.