THE FTSE 100 Index surged ahead yesterday closing 36.7 points, or 0.6 per cent, ahead to 6050.7 after Portugal borrowed 1.25 billion euros (£1bn) in a bond auction.

Many economists fear Portugal is to follow Greece and Ireland and be forced to ask for a bailout from the EU and IMF.

HSBC added 26.3p at 715p, Lloyds rose 1.5p at 67.7p, while Barclays advanced nearly four per cent, or 10.6p, to 302.6p.

Mining companies led the FTSE higher, making up three of the top four risers, lifted by strong metal prices, with Eurasian Natural Resources up 47p at 1125p, Vedanta adding 103p at 2514p, and Kazakhmys ahead 59p at 1671p.

Sainsbury’s reported better-than-expected likefor- like sales growth of 3.6 per cent in the 14 weeks to January 8.

The update fuelled speculation that Sainsbury’s has overtaken Asda as the UK’s second largest supermarket, but broker Seymour Pierce kept its sell rating on the stock and said shares had a premium valuation.

The stock was 8.4p lower at 382p, while rival Tesco fell 1.7p to 423.7p ahead of its own update tomorrow.

Superdry fashion firm SuperGroup enjoyed its best ever Christmas trading with a near doubling of retail sales.

Shares recovered from a recent wobble to surge 19 per cent, or 226p to 1390p, as the chain said rising cotton prices will not have an impact on this year’s profit margins as previously expected.

Shares in Barratt Developments dropped 2.1 per cent, or 2p, to 92.9p, after the housebuilder warned that activity was hampered during last month’s Arctic conditions which held back completions and some projects could not be finished.

Bovis Homes was down 10.7p at 413p and Persimmon off 8.3p at 432.1p.