A STRONG run for mining stocks helped the FTSE 100 Index push above the 5950 mark yesterday for the first time since June 2008.

The London market closed up 60.12 at 5951.8, despite a warning from key agency Moody’s that it may lower Portugal’s credit rating. The blow comes only days after a similar move by the credit ratings agency on Spain.

Higher metal and oil prices boosted commodity stocks, while banks also made decent gains following a poor run sparked by fears of European debt contagion.

Royal Bank of Scotland finished at the top of the risers’ board, up more than four per cent, or 1.7p, at 40.2p, while Barclays added 7.4p to 268.4p.

Lloyds, which spooked investors on Friday after it highlighted the impact of Ireland’s mounting debt crisis on its books, also made headway, up 1.6p to 68½p.

Miners likewise dominated the risers’ board, with Anglo American up 131p to 3272½p, Xstrata up 51p at 1506p and Eurasian Natural Resources ahead 31.5p at 1031p.

Rolls-Royce saw shares gain 13p to 650p after the European Aviation Safety Agency said it was expecting to relax tight inspection rules imposed on its Trent 900 engines.

Thin trading volumes in the lead up to the Christmas holidays were also thought to be behind yesterday’s volatility.

The surge came despite news of more woes in the retail sector after small cap stock Alexon, the owner of Ann Harvey, Dash and Kaliko brands, issued a profits warning following snow-hit sales.

Alexon’s shares plummeted 18 per cent, or 2.8p, to 12.3p, after it reported a 20 per cent fall in sales over the past few weeks.

Blue-chip retailers were also down, with Marks & Spencer dropping 2.9p to 370p and Next off 4p at 1964p.