London- The recovery of the London stock market continued into a second day Tuesday as co-ordinated efforts to stabilize the financial sector pushed the Financial Times Share Index (Footsie) 4 per cent higher in early trading.

The Footsie rose by 157 points to 4,413.9 points during morning trading, but the shares of of leading banks remained volatile after the bail-out plans announced Monday.

Royal Bank of Scotland, which is in line to receive 20 billion pounds (35 billion dollars) under the cash injection scheme, was up 5 per cent, while Barclays' shares rose by
13 per cent.

However, Lloyds TSB, which has agreed a takeover deal with Halifax Bank of Scotland (HBOS), was marginally down by 0.12 per cent, as HBOS shares were up by just 0.67 per cent.

The two banks, expected to benefit from the scheme to the tune of 17 billion pounds, are set to renegotiate the terms of their merger. (dpa)