London - The London stock market rallied at the end of a volatile week Friday, as the Financial Times Share Index (FTSE) gained ground to close 5 per cent, putting it above the crucial 4,000-point mark.

The FTSE held firm in afternoon trading, despite early falls on Wall Street following more dire news from the US housing market.

The London index was up 201.6 points at 4,063 points at the close, ending what one stockbroker described as a "neurotic week."

"There is no real depth of strength in the markets," said analyst Justin Urquarth Stewart of Seven Investment Management. He predicted that markets would remain volatile until the money promised by governments at the start of the week "passed hands" and was put into banks. (dpa)