As financials, miners, utilities and oil stocks all surged amid relief that a bank rescue plan had been agreed, the tumbleweed was left blowing across an unloved property sector.

HBOS and Lloyds TSB were two of Britain’s biggest lenders to property developers and Credit Suisse estimates that the state-controlled beast created from their merger will hold 26 per cent of all outstanding UK commercial property loans. Meanwhile, £100 billion of property loans are due for refinancing by the end of 2010.

Civil servants are less likely to agree to roll over loans than bonus-driven chief executives. Furthermore, there are worries about the health of retail tenants, with Baugur, of Iceland, in talks over its British retail assets, among them House of Fraser.

Hammerson fell 6½p to 801½p while Land Securities was down 5p at £10.98. Land also faces the problem that bank nationalisations may make it harder for bidders for its Trillium business to raise the cash.

HBOS fell 34.2p to 90p, Lloyds TSB lost 27.4p to close at 162p and Royal Bank of Scotland fell 6p to 65.7p. The Government bailout will substantially dilute existing equity-holders and all three gave warning of extra pain from toxic assets.

In the FTSE 250, Mapeley fell 56p to 649½p and Shaftesbury, the West End developer, fell 20½p to 334p. Taylor Wimpey slid 3p to a new low of 17¾p, because the Government’s action will make it even less likely that its debt will be forgiven when covenants are breached in January.

The FTSE 100 jumped 324.84 points to 4,256.9 as an early rally on Britain’s bailout plan was given extra strength by Wall Street opening strongly up. Among the main drivers of the gains were Standard Life, jumping 44¼p to 260p, and utilities such as National Grid, up 92p to 647½p. National Grid has fallen from 710p since Tuesday.

Oil was also on the rise as the price rebounded. Tullow rose 38¼p to 513½p even though analysts at Exane BNP gave warning that the explorer may have to delay its refinancing plan. It needs an extra £200 million for expansion for next year. The broker kept a “neutral” rating on Cairn Energy, up 239p at £17.36, but cut its price target, since Cairn has recently put negotiations over a $500 million (£289 million) loan on hold, although it has the cash to finance its key Rajasthan fields by the end of 2009. BG Group rose 75p to 848p, although Credit Suisse cut its price target to £14.70 as it may be forced to hand a 20 per cent stake in its Kazakhstan oil-field to the Kazakh Government.

Trinity Mirror fell 3p to 60p after a survey by the Institute of Practitioners in Advertising showed marketing departments making substantial budget cuts in the third quarter. It was also hit by poor national newspaper circulation figures released on Friday and by Morgan Stanley saying that its earnings were one of the most exposed to pension deficit. The total liability is 350 per cent of its market cap, while the deficit is 83 per cent.

— New York: Wall Street snapped back in astonishing fashion from last week’s losses after governments announced further steps to support the global banking system, including plans by the US Treasury to buy stocks of some banks. Indexes rose, led by the Dow Jones industrial average, which closed 936.42 points up at 9,387.61, its biggest single-session rise ever.

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