By Tricia Wright LONDON, May 10 (Reuters) - Britain's top share index rose sharply on Monday as investors cheered an emergency rescue package worth about $1 trillion to stave off the spread of Greece's debt crisis. At 0902 GMT, the FTSE 100 was up 205.56 points, or 4 percent, at 5,328.58, after it fell 137.97 points, or 2.6 percent, on Friday, hurt by concerns over Greek debt contagion and the lack of an outright winner in the British election. It is heading for its biggest one-day percentage gain since early April 2009, after it fell 7.7 percent last week. "It's been a positive start on, at last, some details on the euro zone rescue package ... there's been some weakness in the likes of the yen and gold which would tend to suggest that investors are gaining some sort of appetite to risk," said Richard Hunter, head of UK equities at Hargreaves Lansdown. Banks were the standout gainers on the FTSE 100, with Barclays, HSBC, Lloyds Banking Group, Royal Bank of Scotland and Standard Chartered jumping 5.9 to 12.3 percent. The rescue, hammered out by European Union finance ministers, central bankers and the International Monetary Fund in talks at the weekend, was the largest package in over two years since G20 leaders threw money at the global economy following the collapse of Lehman Brothers. "On an overall perspective obviously there's still some way to go. There's still the implementation of the package, and the market's got to be comfortable that this hasn't in any way derailed the global economic recovery," Hunter said. Insurers were also in favour. Old Mutual, Standard Life, and Prudential put on 4 to 7.6 percent. Prudential has made progress in make-or-break talks with UK regulators over its acquisition of AIG's Asian arm, and is close to announcing a deal, sources familiar with the matter said. Mining stocks also saw good demand as metals prices firmed as the rescue plan reverberated across markets, with Kazakhmys , Eurasian Natural Resources and BHP Billiton adding 6.3 to 8.7 percent. Vedanta Resources climbed 7.1 percent after the India-focused mining group bought Anglo American's zinc assets for $1.34 billion to boost its exposure to the metal. Anglo's shares put on 7.3 percent. Lonmin added 5.3 percent. The world's third biggest platinum producer swung to a first-half profit after metal prices rebounded and stuck to its annual sales target despite a furnace accident. Integrated oil stocks were boosted by stronger crude prices . Royal Dutch Shell rose 2.7 percent, while BG Group, aided by a UBS upgrade to "buy" following share price weakness, added 3.9 percent. BP SOLE FALLER BP, however, was the only FTSE 100 faller, dropping 1.4 percent after it said the oil spill in the Gulf of Mexico has cost it $350 million so far, suggesting a run rate of cash far higher than some analysts had predicted. A target price cut from BofA Merrill Lynch also weighed on BP. Among individual movers, Centrica added 4.6 percent after the British utility said its earnings outlook for 2010 remained positive, with its British Gas unit expected to have a strong first half thanks to growing customer numbers and a colder than usual winter. The Bank of England is all but certain to leave interest rates at 0.5 percent and not to undertake any further quantitative easing purchases when it concludes its Monetary Policy Committee meeting on Monday. Investors will closely watch the latest developments in the British political landscape after Thursday's election delivered an inconclusive result. (Editing by Hans Peters) Keywords: MARKETS BRITAIN STOCKS * For related prices, Reuters Terminal users may click on - * UK stock report FTSE index: techMARK 100 index: FTSE futures: Gilt futures: Smallcap index: FTSE 250 index: FTSE 350 index: Market digest: Top 10 by vol: Top price gainers: Top % gainers: Top price losers: Top % losers: * For related news, click on - * UK hot stocks: Wall Street: Gilts report: Euro bond report Pan European stock report: Tokyo stocks: HK stocks: Sterling report: Dollar report: * For company prices, click on - * Company directory: By sector: * For pan-European market data and news, click on - * Daily European stocks report........................ European Equities speed guide................ FTSE Eurotop 300 index........................... DJ STOXX index................................... Top 10 STOXX sectors........................ Top 10 EUROSTOXX sectors................... Top 10 Eurotop 300 sectors.................. Top 25 European pct gainers.................... Top 25 European pct losers..................... Keywords: MARKETS BRITAIN STOCKS =2 (email@example.com; +44 207 542 8114; Reuters Messaging:firstname.lastname@example.org) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved.
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