The FTSE 100 index took heart from a strong opening surge on Wall Street to finish the first day of the week well ahead. London's leading shares built on earlier gains and a strong opening from the Dow Jones Industrial Average to close up 53.3p points higher at 4074.8.

A strong showing on Asian stock exchanges overnight helped drive early gains while Wall Street, reopened after Friday's Independence Day holiday, helped give shares a fresh boost on renewed optimism that the US will show stronger-than-expected growth in the second half.

Making its stock market debut was retailer Kesa Electricals, which was spun off from B&Q owner Kingfisher, itself re-establishing a new share price at 284p, 14.75p up, following the demerger.

Kesa, which owns the UK high street electricals chain Comet, is expected to join the FTSE 250 Index and finished the day at 192.5p.

Among blue-chip risers, chemicals giant ICI headed the Footsie following speculation of a buyer for its National Starch unit.