THE FTSE 100 Index closed up 14 points at 5997.4 yesterday, helped by a strong performance from water companies after signs the UK’s inflationary bubble will boost results.

Earlier in the day it had pushed above the 6000- mark, but slipped back again after the US government revealed that 36,000 new non-farm jobs were created last month, which was far below analysts’ expectations of 140,000.

The pound was down against the dollar, at 1.60, despite the disappointing jobs figures, while sterling rose against the euro, at 1.19, after the latest survey by the Halifax showed a 0.7 per cent rise in house prices last month, offsetting a sharp fall in December.

Severn Trent and United Utilities showed strong growth in the UK’s top-tier, both rising four per cent after Bank of America Merrill Lynch introduced buy ratings on the pair to reflect higher inflation.

Severn was up 50p to 1440p and United lifted 24p to 579p. Second-tier stocks Pennon and Northumbrian Water were raised to neutral from underperform, helping them rise 4.5p to 621.5p, and 5.6p to 314.1p, respectively.

Oil firm Royal Dutch Shell extended the three per cent loss seen in the previous day’s session with a one per cent fall, down 32.5p to 2145p, after its fourth quarter profits and production performance left investors cold on Thursday. Other energy stocks remained in the red, with BG Group off 5.5p to 1429p.

Cairn Energy was the biggest FTSE faller, down 11.7p to 426.3p, after reports that Vedanta Resources was considering pulling out of a deal to buy a majority stake in Cairn India.

TUI Travel remained under pressure due to the impact of Egypt’s civil unrest on the holiday plans of thousands of customers.

Shares dropped another 2p to 241p.