The FTSE 100 Index set another three-year high yesterday as the performance of heavyweight shares helped add to the feel-good factor in London.
Oil majors BP and Shell had already pushed the top flight higher before the Olympics vote rounded off an upbeat session to leave the Footsie 39.5 points stronger at 5229.6 by the close.
As expected, many construction firms were in positive territory as investors looked for buying opportunities following the decision in Singapore.
BP and Shell had earlier driven the Footsie over the 5200 barrier after crude oil prices headed back to the $60 a barrel mark.
Prices strengthened amid concerns about supply disruptions in the United States as a tropical storm pounded the Gulf Coast, forcing the evacuation of rigs in the Gulf of Mexico.
BP rose by almost two per cent at one point before settling back to end the session one per cent or 71/2p stronger at 630p. Shell put on 5p at 5683/4p. A number of other heavyweight stocks lifted the market with mobile phone operator Vodafone up 11/2p at 138p and GlaxoSmithKline 15p stronger at 1372p.
The biggest rises, however, came from the financial sector after fund manager Amvescap said Canadian rival CI Fund Management had expressed an interest in its Canadian operation and indicated it may also be keen on the whole UK group.
Amvescap surged 15 per cent or 32p to 395p, while Man Group lifted 68p to 1544p and Schroders cheered 271/2p to 7921/2p.
The Olympics factor contributed to healthy gains for a number of construction-related firms, including building products firm Hanson --up 11p at 5451/2p.
Among other potential beneficiaries, Costain rose 2p to 521/2p and Barratt Developments gained 241/2p to 7251/2p. Telford Homes, which has a development close to the Olympics site in Stratford, surged 13 per cent or 18p to 1571/2p.
Corporate announcements were focused on the second tier, and in particular cautious comments on trading conditions from supermarket group Somerfield.
Somerfield investors were cheered, however, by the company's update that it was still in " advanced" takeover talks with potential bidders. Shares closed 31/2p higher at 1941/2p.
Elsewhere, pubs and brewing firm Greene King failed to earn reward for record annual profits of £94 million and a report of positive summer sales. The stock was in positive territory for a while, but ended 11p lower at 1283p.
Recruitment firm Michael Page managed one of the strongest performances of the session after surprising analysts with a 30 per cent jump in second quarter revenues and a forecast that profits would be ahead of expectations. Shares jumped 261/4p to 2281/4p.
