THE proximity of the US presidential election and high oil prices hampered the London market's progress yesterday.

The FTSE 100 climbed 18.9 to 4583.4 as investors picked up discounted stocks, but the rise was not enough to make up for Monday's heavy losses.

Although the cost of a barrel of crude has fallen below recent record highs, it remained close to $55 a barrel, contributing to the reluctance to invest.

Analysts at Barclays Stockbrokers said concerns that there may be a repeat of the controversial 2000 race for the White House also affected the mood.

Barclays said: "This is the worst possibility for financial markets, which are not choosy between Mr Bush and Mr Kerry as long as there is a clear winner."

The Dow Jones Industrial Average was upbeat, standing more than 50 points higher by closing time in London.

BP was among the heaviest fallers in London as investors worried that the oil producer will not buy back as many shares next year as it did this year, opting instead to spend money on infrastructure.

Profits of £2.14bn also failed to impress as BP shares slipped 6p to 531p. Shell was down 2p at 412p, but Cairn Energy rose 16p to 1480p.

Cigarettes group BAT was also down, despite announcing a 20 per cent rise in profits.

Shares fell 1p to 817p.

Those lifting the mood included advertising group WPP after it said quarterly revenues grew at the fastest rate since 2001.

Shares rose 16p to 539p, despite a cautious note on prospects for next year.

Media stocks were also in favour, with ITV topping the risers, up 3p to 104p, and Reuters advancing 7p to 370p by the close.

Insurer Friends Provident was up p at 135p after announcing plans to buy Luxembourg life assurer Lombard for £183m.

Elsewhere, housebuilders were in the money after Westbury announced a 22 per cent rise in half-year profits to £58m and said it remained convinced of the sustainability of the UK housing market in the longer term.

Westbury shares climbed 14p to 383p, while Barratt Developments rose 14p to 513p.

Bovis Homes climbed four per cent, or 20p, to reach 532p by the end of trading, Redrow rose 10p to 342p, Persimmon gained 16p to 623p and Taylor Woodrow advanced 4p to reach 240p by the close.

But shares in lastminute.com fell nearly one per cent, or p to 104p after chairman Allan Leighton said he was stepping down.

Shares in logistics group Exel climbed 12p to 702p after winning business with some of the high street's biggest names and voicing confidence about meeting mid-term growth targets.

Anglo American was another of the day's best permormers, up 36p at 1232p. British Land was another, rising 19p to 743p.