FTSE rises to 4-month closing high

By Dominic Lau

LONDON (Reuters) - Britain's benchmark index rose 0.8 percent on Friday to hit its highest closing level in four months as surging crude prices pumped oil shares higher, while bid activity powered British Energy (BGY.L: Quote, Profile, Research).

The FTSE 100 .FTSE closed up 52.5 points at 6,304.3, but well off its day's high of 6,348.6 after a survey showed U.S. consumer confidence tumbled to its lowest in 28 years this month.

The index gained 1.6 percent this week, but is still down 2.4 percent for the year.

"We had the lowest consumer confidence figures in the U.S. since the 1980s so that's really what turns the U.S. negative. No doubt that's going to put a cap on UK stocks as well going into next week," said Martin Slaney, head of derivatives at GFT Global Markets.

Topping the gainers, British Energy leapt 5.2 percent to 715.5 pence after saying it had received a range of takeover proposals, including some prices above Thursday's closing price of 680 pence.

London Stock Exchange (LSE.L: Quote, Profile, Research) surged 5.1 percent on market talk of bid interest after Sanford Bernstein said in a report that the fall in its share price had brought the UK bourse within reach of Nasdaq (NDAQ.O: Quote, Profile, Research) and NYSE Euronext (NYX.N: Quote, Profile, Research).

Oil shares added nearly 26 points to the index as crude prices CLc1 shot to a record high near $128 a barrel.

BP (BP.L: Quote, Profile, Research) advanced 1.5 percent, Royal Dutch Shell (RDSa.L: Quote, Profile, Research) rose 2.8 percent and Tullow Oil (TLW.L: Quote, Profile, Research) put on 3.2 percent.  Continued...