The stock exchange has seen its biggest day of gains since May after the British government approved a plan to privatize the public sector.
The London Stock Exchange (LSE) hit a three-month high of 5.9 billion pounds ($8.1 billion) at 7:53am GMT (03:53 GMT) and then dropped to 5.8 billion pounds as markets continued to bounce.
The LSE is the market capitalization of Britain’s largest private company, the Royal Bank of Scotland (RBS).RBS, the biggest lender in Britain, will be taken over by a consortium of private investors after the Brexit vote.
The government says it will be able to raise £4.4 billion ($5.1 million) from a sale of RBS shares.
The market is now up 6.5% in the year to March.
The British government’s decision to sell the public assets in the public service to private firms has been a contentious one for years, with critics calling it an overreach of government powers.
The government says the government will be taking over a “highly valuable and complex” public service.