Nov. 4 (Bloomberg) -- U.K. stocks advanced for a sixth day, lifting the FTSE 100 Index to more than 20 percent above its 2008 low. Retailers led gains after Marks & Spencer Group Plc reported first-half net income that beat analyst estimates.

BP Plc and Royal Dutch Shell Plc rallied after the price of oil rose and BG Group Plc, Britain's third-largest natural- gas producer, said it expects oil and gas reserves to rise on discoveries in Brazil and exploration progress worldwide.

The FTSE 100 Index gained 196.22, or 4.4 percent, to 4,639.50. The FTSE All-Share Index also increased 4.4 percent and Ireland's ISEQ Index added 1.6 percent.

The benchmark FTSE 100 fell 40 percent in 2008 through Oct. 27 as credit losses brought banks to the brink of bankruptcy and an economic slowdown worsened. Since then, the index has rebounded 20.4 percent as central-bank cash injections and interest-rate cuts worldwide showed signs of thawing the freeze in lending.

``The credit crunch is easing a little bit,'' said Marko Jagustian, a senior dealer at GFT Global Markets in London. ``We have seen some very positive signs that equities are bottoming out thanks to the global coordinated rate cuts.''

The cost of borrowing dollars for one month in London fell today to the lowest level in almost four years.

Marks & Spencer, BP

Marks & Spencer climbed 7.7 percent to 238.5 pence. First- half net income fell to 223.2 million pounds ($350 million) in the six months ended Sept. 27, from 393.2 million pounds a year earlier. That beat the 211 million-pound median estimate of six analysts surveyed by Bloomberg News.

Sainsbury Plc, the third-largest U.K. food retailer, added 3.9 percent to 290.25 pence.

BP, Europe's second-largest oil company, added 4.9 percent to 533.25 pence. Shell, the biggest, increased 6.7 percent to 1,863.

Crude oil for December delivery rose $5.75, or 9 percent, to $69.66 a barrel at 12:05 p.m. on the New York Mercantile Exchange. The contracts have dropped more than half since reaching a record $147.27 on July 11.

Royal Bank of Scotland Group Plc, waiting to take up the U.K.'s biggest bank bailout, lost as much as 9.5 percent to 59 pence before closing unchanged. The lender wrote down 1.4 billion pounds of assets in the third quarter and said it may post a full-year loss.

The following stocks also gained or fell in the U.K. market. Stock symbols are in parentheses.

U.K. companies:

Balfour Beatty Plc (BBY LN) gained 25.25 pence, or 9.4 percent, to 293. Britain's biggest builder said business levels since the end of June were ``in line'' with internal targets as orders continued to increase, securing long-term income.

Croda International Plc (CRDA LN) added 22 pence, or 4.2 percent, to 550. The U.K. maker of natural-based chemicals for clients such as Procter & Gamble Co. said third-quarter profit rose 73 percent on ``strong growth'' at its personal and crop care businesses.

Parity Group Plc (PTY LN) slumped 1.25 pence, or 14 percent, to 7.75. The European provider of computer-services to cereal-maker Kelloggs Co. fell to the lowest since at least 1993 after saying ``difficult'' business conditions may continue into next year.

Premier Foods Plc (PFD LN) jumped 4.25 pence, or 14.9 percent, to 32.75. The second-largest U.K. bread baker said Will Carter became the latest company director to purchase shares.

Prodesse Investment Ltd. (PRD LN) slid 40 pence, or a record 10 percent, to 350 pence. The U.K. closed-end fund that invests in residential mortgage-backed securities said its net asset value per share fell 12 percent in the third quarter as market conditions deteriorated.

Punch Taverns Plc (PUB LN) lost 13.25 pence, or 7.4 percent, to 170. The U.K.'s largest pub owner posted an annual loss as Britain's slumping economy forced the company to write down the value of its properties.

Sterling Energy Plc (SEY LN) soared 1.1 pence, or 39 percent, to 3.9. The U.K.-based oil and natural-gas explorer with operations in Africa, Mexico and the Middle East, rose as much as 38 percent in London trading after saying it received approaches about a possible takeover.

To contact the reporter on this story: Sarah Thompson in London at sthompson17@bloomberg.net.

Last Updated: November 4, 2008 12:24 EST