FTSE rises on Cyprus bailout deal

THE TOP share index rose in early trading this morning, as news that Cyprus had agreed a €10bn bailout deal improved investor sentiment.

Cyprus, which had until today to agree a deal, will shut down its second-largest bank, the Laiki bank.

The FTSE 100 rose 0.6 per cent in early deals, with Aberdeen Asset Management leading the pack, up 6.2 per cent.

This morning it said in a trading statement it had pulled in £3.5bn of net new money in the first two months of the year.

Fellow fund manager Schroders, which this morning said it would pay £424m for Cazenove Capital, was up three per cent.

Telecoms giant Vodafone rose 2.4 per cent following reports that it was eyeing an exit from the US.

Engine making Rolls-Royce was up 2.1 per cent.

UK banking shares had a good morning. Barclays was leading the pack, up two per cent. HSBC rose 0.6 per cent, RBS was up 1.6 per cent and Lloyds Banking Group added 1.2 per cent.

At the other end of the spectrum, Eurasian Natural Resources was down 2.4 per cent, and fellow miner Randgold Resources fell 0.5 per cent.

Water company United Utilities was off 1.5 per cent. Last week it said it expected higher profit this year than last. Fellow utility Severn Trent was off 0.7 per cent.

In Asia, the Nikkei closed up 1.69 per cent, and in the US the Dow Jones closed up 0.63 per cent.