LONDON (ShareCast) - HBOS is leading the blue chip risers, with Lloyds TSB, Barclays and Royal Bank of Scotland also among the best performers following the US Senate's decision to back the $700bn mortgage bail-out plan.

The Senate voted 74 to 25 in favour of the proposal, which now moves to the House of Representatives where the vote is expected to be a good deal closer.

Reports this morning that Gordon Brown is under pressure to offer a £1.1trn cast-iron Government guarantee to all money in savings accounts also helped sentiment over the sector.

Marks & Spencer is another good riser after better-than-feared figures this morning. The giant retailer reported a 6.1% drop in UK like-for-like sales in the second quarter, in line with expectations.

Pali International has raised its rating on Marks and Spencer to ‘neutral’ from ‘sell’ after the clothes and food retailer’s second quarter results. Although M&S reported falling sales, it also outlined cost cutting measures. Capital expenditure this year is anticipated to be around £700m compared to previous guidance of £800 to £900m.

“Marks & Spencer is off the hook for the time being,'' said Pali analyst Nick Bubb. “There have been useful cost savings.” Next and Kingfisher are up in sympathy.

FTSE 100 - Risers
HBOS (HBOS) 173.40p +17.08%
Marks & Spencer Group (MKS) 233.00p +10.82%
Next (NXT) 1,146.00p +8.22%
Wolseley (WOS) 431.25p +7.54%
Lloyds TSB Group (LLOY) 266.50p +6.60%
Kazakhmys (KAZ) 603.00p +5.42%
Pearson (PSON) 624.00p +5.41%
Kingfisher (KGF) 142.20p +5.33%

FTSE 100 - Fallers
Vedanta Resources (VED) 1,007.00p -2.71%
Cairn Energy (CNE) 2,044.00p -2.39%
RSA Insurance Group (RSA) 150.50p -1.76%
Unilever (ULVR) 1,537.00p -1.66%
Tullow Oil (TLW) 703.00p -1.13%
Standard Life (SL.) 254.25p -1.07%
Diageo (DGE) 949.00p -1.04%
SABMiller (SAB) 1,078.00p -0.83%

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