FTSE sharply up on Greek austerity vote (AFP)

LONDON (AFP) – Stocks in London closed sharply higher again on Thursday following Greece's approval of austerity measures needed to unlock critical bailout funding and stave off a debt default.

The benchmark FTSE 100 index of top shares jumped 1.53 percent to close at 5,945.71 points.

"The recent rise in European markets has continued today as markets end the month, quarter and first half of 2011 on a positive note," said CMC Markets analyst Michael Hewson.

"Oil and banking sectors are leading the gainers as fears about an imminent Greek default get pushed out beyond the release of the next tranche of bailout funds."

Lloyds Banking Group (LBG) was the most traded stock, seeing 356 million shares changes hands, followed by Vodafone, which saw 165 millions switch owners.

Lloyds, 41-percent state-owned after a massive bailout in 2008, had earlier said it will axe 15,000 jobs in a drastic cost-cutting plan that will halve its international base and save ￡1.5 billion per year by 2014.

In response, the bank's shares rocketed to the top of the FTSE 100 index at midday, gaining 8.02 percent to 48.235 pence as investors welcomed news of the efficiency measures.

Lloyds also ended the day as the top blue-chip riser, gaining 9.73 percent -- or 4.35 pence -- to 49, followed by oil and gas company BG Group, which added 4.74 percent -- or 64 pence -- to end at 1,414.

Energy services firm Petrofac was the biggest faller, dropping 2.01 percent -- 31 pence -- to 1,514, followed by yesterday's biggest riser, interdealer broker Icap, which fell 1.21 percent -- or 5.8 pence -- to 473.

On the currency markets, a pound was worth $1.6074 at 17:10 BST, up from $1.6060 at the same time on Wednesday, while the euro stood at 1.1060, down from 1.1131 over the same period.