LONDON MARKETS: Barclays, Next Lift FTSE For Fifth Straight Day

By Sara Sjolin

LONDON (MarketWatch) -- The U.K.'s benchmark stock index inched higher on Wednesday for a fifth straight day of gains, as well-received earnings updates from Barclays PLC and Next PLC stoked momentum.

The FTSE 100 index rose 2.97 points, or 0.04%, to end at 6,777.70, marking the highest closing level since May.

Barclays (BCS) rose 0.9% after a well-received earnings report. The bank posted a decline in underlying third-quarter profit, but Chief Executive Antony Jenkins said the firm has made good progress on the restructuring program and has moved faster than expected in getting rid of loan portfolios earmarked for sale. Investec Securities analyst Ian Gordon kept a buy rating on the bank and said in a note that Barclays remains their preferred U.K. domestic bank.

Next rallied 4.7% after the clothing retailer raised its full-year profit guidance as it reported a 4.3% rise in third-quarter brand sales.

Petrofac Ltd added 0.7% after the gas and oil-services provider was awarded a $650-million project in Algeria with Italian lump-sum contractor Bonatti.

BP PLC (BP) gained 0.9% after Société Générale lifted the oil major to buy from hold. The company on Tuesday posted its biggest percentage gain since January 2011, after saying it would sell $10 billion in assets by the end of 2015 and use the proceeds for "additional distributions to shareholders."

On a more downbeat note in London, shares of Standard Life PLC dropped 4% after reporting quarterly inflows and assets under administration slightly below expectations.

Pearson PLC shares lost 3.6% after the publisher warned that full-year operating profit is expected to be lower than in 2012 due to the accounting impact of the Penguin Random House transaction and weak market conditions for college textbooks in North American Education.

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