The FTSE 100 closed up 59.28 points at 4638.92 points, clinging onto its sixth consecutive day of gains despite Wall Street's rally sputtering to a halt as trading this side of the Atlantic came to a close.
Wall Street, which had been up over 110 points in early trading, was sporting gains of just 30 by the time trading stopped in London as data showing that US factory orders slumped in November lead to a spate of selling.
In London, investment group 3i topped the FTSE 100 leaderboard at the close, up 59.7 points at 342.25p, as investors flocked back to the unloved financials sector.
The shares lost 75% of their value last year which left them at a 70% discount to the net asset value of the company's investments. Even in these recessionary times that is rather pessimistic and traders said investors have been returning.
Man Group, meanwhile, gained 42.5p to 287p as analysts upgraded their profit forecasts for the hedge fund group on the back of the solid performance of its AHL business.
The AHL diversified fund was up almost 25% last year compared with an estimated 23% decline in the overall value of hedge funds. In a note on the stock, Credit Suisse raised its forecast for Man's performance fees for the half year to end March 2009 from $16m to $239m because of AHL's success.
Miners helped the market with Rio Tinto up 193p at 1927p and Xstrata up 106p at 899.5p.
AstraZeneca added 93p to 2792p after the drugs group announced it has applied to the European regulator for permission to sell its needle-free flu vaccine in the EU. It was cleared for use in the in the US in 2003 where the nasal spray is sold as Flumist.
But it was retailers that dominated much of the day after in-line trading updates from Next, up 136p at 1227p and Debenhams, up 5.75p at 34.25p. Traders said the movement in Debenhams' stock was exacerbated by the closure of several large short positions which had been taken on the expectation that the heavily indebted department store would be forced into an emergency fund raising.
Marks & Spencer added 8.75p to 238.75p ahead of Wednesday's trading update while DSG International added 3p to 21p - a rise of over 16%.
But shares in EBTM plunged 80% to 0.3p as the online retailer of music-related fashion - hence its name: Everything But The Music - was forced to put itself up for sale after a dismal Christmas.
Lloyds TSB was the biggest loser in the FTSE 100 index at the close, down 6.7p at 119p as Deutsche Bank reiterated its sell advice from last month.
Johnson Matthey was not far behind - down 42p at 1079p - after Citigroup downgraded its stance on the shares to hold from buy. The broker reckons the the recent rally - which has seen the stock gain 75% - could be halted by declining car sales. The company is a major processor of platinum for automotive catalytic converters.
