On an aggregate level, the market is benefiting from the view that interest rates are near their peak, and from the improvement in corporate results. UK companies are also buying back their shares even though institutions are selling them. Key sectors are gaining from factors specific to them. BSCH’s bid for Abbey National has bolstered the banking sector, the largest in the market. Oil & gas, the second largest sector, has benefited from higher oil prices, while mining has gained from the rise in commodity prices, with metals doing particularly well. Together these three key sectors account for over 40% of the FTSE 100 by capitalisation.