UK miners boosted by strong start to US earnings season "Vedanta offers near-term earnings growth stemming from organic growth across most divisions (aluminium, copper, zinc, energy) and, based on our 2014 estimate, it offers a 4pc dividend yield, which is at the top end of the range for its mining peers," the note said. Goldman Sachs also upgraded its rating on the Royal Bank of Scotland to buy from neutral, after it took an alternative view to markets that splitting the state-backed lender would be good for it, causing the shares to climb higher, after an already strong start to the day. Goldman said it believed splitting the state-backed lender could address its "core challenges." "At Mansion House, it was indicated that HM Treasury intends to split Royal Bank of Scotland if the exercise: 1) does not require additional taxpayer capital; 2) supports the British economy; 3) is in the interests of taxpayers; and 4) accelerates the return to private ownership of RBS," Goldman said in its note. "On our analysis, a split could clear each of the four Mansion House 'hurdles" while addressing the group's key challenges: muted core returns and elevated uncertainty. " Shares had initially risen in the lender as rumours swirled that it was unlikely that Chancellor George Osborne would actually split the bank and boosted by GS closed up 15.6, or 5.4pc, to 303.8p. "GS is going against the grain here with this call," said Ishaq Siddiqi, market strategist at ETX Capital. Markets also see a good/bad bank split as behind the curve, or too late - it should have been done after Fred the shred. Hester did a solid job in deleveraging the balance sheet with the non-core book estimated to be currently sitting comfortably below £50 billion, so it is not a threat to warrant a value-destructive move such as a bank split. There was also an interesting note put out about the tobacco industry, which is running out of smoke, according to Canaccord Genuity. The analysts say that the electronic cigarette will "prove to be the most significant development in the history of the tobacco industry." It expects smokers to switch from the real thing to e-cigarettes at "an accelerated rate," with the market expected to grow 50pc this year to $3bn from the previous year. "Winners and losers will emerge, but are hard to predict at this relatively early stage in e-cigarettes" development," the note said. This new uncertainty, and the faster long term decline of tobacco which we predict, should cause investors to reassess their holdings in the sector. As a result it has downgraded British American Tobacco from hold to sell and cuts it target price from £32.25 to £20. Imperial Tobacco also faced the chop, downgraded from buy to hold, with its target price cut from £29 to £24.50. However, the change in rating did little to affect the share's puff. BAT gained 16 to £35.25 and Imperial rose 21 to £23.30. At the other end of the table, investors in ITV took profits after share's hit fresh highs at the start of the week, causing the share to shed 2.6, or 1.7pc, to 150.3p.. Overall the FTSE 100 finished the day hitting a one-month high, up 63.01, or 1pc, to 6,513.08 as the "good feeling in markets after the US jobs numbers continued to reverberate," as one analyst put it. The FTSE 250 also finished in the black, up 159.49 or 1pc to 15,752.43. Aveva Group topped the mid-cap index, rising 310, or 13.7pc, to 310p. The computer software maker said it has seen a "good start" to the financial year, with demand growth steady in Europe, Africa and Asia , with activity picking up in North America. Analysts at Jeffries raised its price target on the company to £27.40 from £25.60 and reiterated its Buy rating. Iron ore miners Ferrexpo jumped 16.9, or 12.2pc, to 154.2p on news of a 21pc rise in iron ore output during the second quarter. Citi said in a note that it expected the miner to deliver volume growth and improved margins as it "viewed positively the management team's prudent approach to growing the business. At the other end of the table was Centamin, which had initially started the day leading the index, but finished the day at the bottom, down 1.6, or 4.2pc, to 36.8p Traders took profits after the stock rallied in recent days after a change in government in Egypt and strong operational results on Tuesday. On the AIM-listed market, structural steel and construction safety specialist Billington Holdings jumped 15, or 24pc, to 77.5 after a market update said the company was trading ahead of expectations.