LONDON’S blue chip sector broke its five-day losing streak yesterday as property firms surged ahead after Land Securities said the firm’s markets were in recovery mode.

Shares in the real estate investment trust jumped six per cent and drove gains across the sector.

A rally for heavilyweighted miners and energy companies also helped drive the FTSE 100 Index up 62.5 points to 5923.5.

The pound was down against the euro and the dollar after six of the ninestrong Monetary Policy Committee at the Bank of England voted to keep rates on hold at their record low of 0.5 per cent.

Higher than expected unemployment figures also depressed sterling.

Mining stocks in London were also lifted after Bank of America Merrill Lynch said a survey of fund managers for May showed investors growing more confident in Japan’s ability to rebound from the earthquake and tsunami. Eurasian Natural Resources was up 34.5p to 841p, after Citigroup upgraded it.

Randgold Resources was also up 177p to 4797p and Kazakhmys was ahead 39p at 1256p.

But the main focus was on the property sector after Land Securities was up 48p at 795.5p, British Land was ahead 26.5p at 604.5p and Hammerson gained 15p to 479.2p.

The cheer failed to extend to catering company Compass, even though it announced a 12 per cent rise in half-year operating profits. The stock fell back to stand 4p lower at 575p.

There was also weakness in the retail sector, with Sainsbury’s falling 10.7p to 344p after its shares went ex-dividend, and with a drop of 13.9p to 209.1p for Argos owner Home Retail Group in the FTSE 250.

Mothercare was a top riser after it outlined plans to close shops. Investors welcomed the news and shares rose five per cent, or 23.3p, to 448.5p, despite a fall in full-year profits.