The floodgates have opened for the FTSE 100 in February, with Britain’s benchmark share index now closing in on all-time highs set in 1999.
Even with half-term week, which typically means lower trading volumes, the Footsie posted strong gains of 2.3% to finish above 6,800.
Investors will wait and see whether the index can test record highs of 6,930 next week.
Footsie heavyweights led the charge, with Vodafone (LON:VOD) and Royal Bank of Scotland (LON:RBS) featuring high on the podium.
The mobile network giant dialled 7% higher to 234p, lifted by chatter from the Square Mile that the company has become a bid target after the sale of its Verizon Wireless stake.
Speculation has mounted in recent months about a possible bid from American telecoms behemoth AT&T for the smaller Vodafone.
UBS analysts today added fuel to the fire, suggesting the new, streamlined company appears cheap to their trained eyes.
“It starts near a sector multiple at 6.1x, too low in our view… If the market does not realise this value, we wonder if a third party could,” said lead analyst Nick Lyall.
State-owned lender RBS meanwhile rose 6% this week, buoyed by reports it is to axe 30,000 jobs in a major shrinking of its investment arm.
That represents a quarter of the state-owned bank's overall workforce of 120,000.
The figure included job losses from the sale of its US Citizens bank employing 18,500, and the separation of Williams & Glyn’s, which has 4,500 staff.
The lender is expected to announce the massive shake-up next week when it posts annual results, including an exit of much of its overseas business.
Since 2008, when it was bailed out by the UK government, the group has shed around 40,000 positions.
Elsewhere, BHP Billiton (LON:BLT), the world’s largest mining company, said it expects commodities demand to continue to grow as global economic conditions improve.
The comments came as the Anglo-Australian company reported better-than-expected interim results, adding to the strong earnings performance by rivals Rio Tinto (LON:RIO) and Anglo American (LON:AAL) last week. The shares were spurred 5% higher this week.
“The global economy is expected to strengthen over the balance of the 2014 financial year, providing continued support for commodities demand, albeit at more moderate rates of growth,” it said.
More Than insurer RSA (LON:RSA) was among the winners on hopes of disposals and a cash call to put it back on track under the watch of new CEO Stephen Hester.
Marks & Spencer (LON:MKS) shares edged up as the retail heavyweight unveiled its new website. M&S.com is no longer controlled by Amazon and is aimed at boosting sales in its ailing clothing arm.
Aerospace and defence group BAE Systems (LON:BA.) was the heaviest faller, down 5% after warning of lower earnings this year. Investors hoping the US defence budget cuts would have a limited impact on the group, which generates 44% of revenues in America, were left disappointed.
Pre-tax profits fell by two-thirds last year to £442mln, with the US budget pressures blamed for the decline.
InterContinental Hotels Group (LON:IHG) followed BAE lower as it failed to announce a cash pay-out to shareholders amid higher-than-expected costs last year.
Credit Suisse made matters worse by downgrading the stock on Friday to ‘underperform’, suggesting Holiday Inn, which accounts for 64% of the group’s rooms, only outperforms in a downturn when hotel stocks tend to fall.