Shares in Barclays, the UK's fourth biggest bank, have climbed to an all-time high.

The shares ended up 6.3% at 2,444p in London, beating a previous record closing high of 2,330p set in February last year.

The good news for the bank's shareholders came as investors continued to switch out of the downturn-hit tech and telecoms sectors into companies seen as having more reliable revenue streams.

"Banks just look like they want to run," said Mike Lenhoff, chief strategist at private client fund manager Gerrard.

Shares in Royal Bank of Scotland, which have proved one of the best investments among major UK firms over the last two years, also claimed another record close.

Rejig rumours

Barclays has also been buoyed by market rumours - which the bank has denied - that chairman Peter Middleton would soon step down to be replaced by chief executive Matthew Barratt.

"It would be positive for the stock," said Bruce Packard, a banking analyst at CSFB.

Mr Barratt is credited with restoring the group's fortunes during his three years in charge.

Casualty

Shares in other banks rose in sympathy with Barclays stock, with shares in HBOS rising 4.0% to 827.5p, and Lloyds shares adding 2.4% to 779p.

Royal Bank of Scotland shares rose 3.9% to close above the 2,000p barrier for the first time.

Royal Bank shares closed at 902p on 24 April 2000.

The rises came as investors continued to shun telecoms firms, notably Vodafone, whose shares remained near four year lows amid lingering concerns about asset write-offs and the performance of a US-based joint venture.

Vodafone shares clawed back 0.5p on Wednesday to close at 107.5p.

Barclays is due to hold its annual general meeting on Thursday. It has said that no boardroom changes were imminent.