Royal Mail led the blue-chip FTSE 100 index, with the company's shares rising 5.3 percent after Dutch rival PostNL abandoned talks with LDC on plans to expand PostNL's 'Whistl' unit in Britain.

Among top sectoral gainers, the UK Oil and Gas index rose 0.6 percent after crude oil prices hit a five-month high on a weaker dollar and on signs that U.S. production had eased and refinery demand had picked up.

"Stronger oil prices have provided some support to the energy sector, while yesterday’s strong market sell-off will have tempted investors to look for bargains," Augustin Eden, analyst at Accendo Markets, said.

"On a company level, Royal Dutch Shell’s move to maintain its dividend added to relatively good performance in its downstream operations to negate a fall in profits and put it in line with sector peers."

Shares in Royal Dutch Shell rose 0.4 percent after it reported stronger than expected profits thanks to refining, which proved valuable in the recent oil price downturn, joining a trend set by rivals BP and Total earlier this week.

The FTSE 100 index, which hit an all-time high of 7,122.74 points on April 27, closed 0.2 percent higher at 6,960.63 points after falling to a three-week low earlier in the session. It rose 2.8 percent this month after falling in March.

However, gains were capped by uncertainty over next week's British general election.

The ruling Conservatives and opposition Labour Party have been neck-and-neck in most polls since the start of the year, but by Thursday seven of the 10 pollsters covering the May 7 election had the Conservatives ahead by varying degrees.

Investors tend to be wary of Labour, which has vowed to regulate utilities and hike taxes on banker bonuses. But analysts say a Conservative win could trigger economic uncertainty because of a party promise to hold a referendum over Britain's membership of the European Union.

Royal Bank of Scotland fell 2.8 percent after the state-backed bank said it expects to settle with U.S. authorities investigating alleged foreign exchange manipulation in the coming weeks and set aside a further 334 million pounds to cover the cost.

Miners also came under pressure, with Randgold Resources, Fresnillo and Anglo American falling 2.6 to 2.9 percent after gold prices dropped 2 percent following better-than-forecast U.S. jobs data that boosted the dollar. A stronger dollar makes metals costlier and hits demand.

Several stocks, including utility Centrica and media group ITV, went "ex-dividend" - meaning they were trading without the attraction of their latest dividend, which in turn took some points off the FTSE in a technical adjustment.

Outside of the blue-chip FTSE 100 index, mid-cap stock Zoopla Property Group surged 16.7 percent after Zoopla agreed to buy the company behind price comparison website uSwitch.com.

(Additional reporting by Sudip Kar-Gupta; Editing by Jon Boyle and Susan Thomas)

By Atul Prakash