Leading shares closed higher Monday, finishing back above the 6,500 level for the first time in 6-and-a-half years with consolidation hopes boosting the banking sector, while mining stocks were also ahead.

By the close, the FTSE 100 ended up 53.8 points at 6,516.2, its highest level since August 2000. The broader markets finished strongly too with the FTSE 250 up 90.7 12,015.9.

Volume was solid, with 3.198 billion shares changing hands in 475,466 deals.

Vodafone was the most traded stock, seeing 235 million units change hands, followed by HSBC, which saw 114 million shares switch owners.

Over on Wall Street, a short while ago, the DJIA was up 102.7 points at 12,714.5 with the Nasdaq up 23.42 at 2515.36.

Back in the UK, banks led blue-chips higher as investors digested news late Friday that Royal Bank of Scotland (RBoS) is vying to wrestle control of ABN Amro from UK rival Barclays.

ABN Amro, currently in exclusive merger talks with Barclays, confirmed it has been approached by RBoS, Spain’s Banco Santander Central Hispano and Benelux bancassurer Fortis to enter exploratory takeover talks.

Still in the banking sector, Bradford & Bingley was the day’s second-best performer, up 12.25 — or 2.67 percent — to close at 471.25.

Elsewhere, heavyweight miners also lent support, in line with gains in commodity prices and vague sector consolidation hopes.

Vedanta Resources topped the leaders board as it closed up 46 — or 3.29 percent — to close at 1,443.

On the downside, the day’s biggest casualty was Imperial Tobacco, down 45 pence — or 1.99 percent — to close at 2217 amid reports the firm could be set to raise its offer for Spanish peer Altadis once again having had two previous approaches rebuffed.

The day’s second-worst performer was brewer Scottish & Newcastle, down 8.50 pence — or 1.45 percent — to close at 579.50 as takeover hopes waned in the light of SABMiller’s rebuttle of interest last week.