The Halifax and Bank of Scotland group bounced back from Wednesday’s 12 per cent fall to top the FTSE 100 risers with a 25p increase to 283p — ahead of the rights price of 275p.

That should relieve pressure on its City underwriters, Morgan Stanley and Dresdner Kleinwort, which would be forced to pick up £4billion-worth of new shares if they remained below the offer price.

As some analysts said the falls had been overdone, Royal Bank of Scotland, which this week completed its record-breaking £12billion rights issue, closed 16fp up at 229p.

Shares in Bradford & Bingley, which controversially scaled back its fund-raising to £258million, or 55p per share, rose 6.5p to 72.5p.

Big builders also enjoyed respite from the recent hammering, with Taylor Wimpey 16 per cent ahead, up 8.5p to 61p, and Bovis Homes 31p higher at 348p.

Barratt Developments, which slumped by a fifth on Wednesday, recovered 3.75p to 76.25p.