LONDON MARKETS: FTSE 100 Notch Record High As Shire, Property Stocks Gain

By Carla Mozee, MarketWatch

LONDON (MarketWatch)--U.K. blue-chip stocks closed at a record high Friday, finishing higher for the week, as shares of drug maker Shire PLC and real-estate companies advanced.

The FTSE 100 rose 1.1% to 7,089.77, as all but eight of its components finished higher. The benchmark surpassed the closing record of 7,037.67 that it notched in late March, according to FactSet data.

Analysts have said capital resulting from the European Central Bank's asset-purchase program has made its way into U.K. equities, pulling them higher alongside the broader European equity market. The Stoxx Europe 600 this week closed at its best level ever, surpassing a record that had stood since March 2000.

Read: Thank Draghi! European stocks knock down 15-year record (http://www.marketwatch.com/story/thank-draghi-european-stocks-hit-highest-level-ever-2015-04-09)

The FTSE 100 ended its holiday-shortened week by rising 3.8%, the biggest gain since the week ended March 20.

Friday's best performance came from Shire PLC . The pharmaceutical company's shares rose 4.8% after the U.S. Food and Drug Administration said it would consider its application for its Lifitegrast dry-eye disease treatment, and will do so under priority review. Under FDA rules, the agency will try to take action on the application within eight months, rather than the 12 months under a standard review.

Property stocks were also among the strongest gainers after Jefferies upgraded its stance on the U.K. residential sector. "The latest data points to a stronger pre-election housing market than we had anticipated," said analysts in a note Friday.

In the group, home builder Taylor Wimpey PLC climbed 3% as it was upgraded to buy from hold. Barratt Developments PLC and Persimmon PLC were upgraded to hold from underweight. Barratt shares picked up 3.1%, and Persimmon rose 1.4%.

But Kingfisher PLC , losing 0.8% after Societe Generate cut its rating on the home-improvement retailer to sell from hold. CRH PLC fell 0.7% and miner Rio Tinto PLC lost 0.2%.

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