FTSE hits two-week closing high after G20

* FTSE 100 rises 1.8 percent to hit two-week closing high

* G20 pledge to keep aid flowing boosts risk appetite

* Miners, oil stocks buoyed by commodities rally

By Tricia Wright

LONDON, Nov 9 (Reuters) - Britain's top share index hit its highest closing level in more than two weeks on Monday as the G20's pledge to keep stimulus in place bolstered investors' risk appetite, with miners and oil stocks leading the charge.

The FTSE 100 .FTSE closed up 92.46 points, or 1.8 percent, at 5,235.18, the highest close since Oct. 23 and notching up its biggest one-day percentage gain since Oct. 14.

"Wall Street is producing a great lead and we've had a very strong message from central banks that rates are staying where they are for quite some time, and meanwhile the global economy is recovering," said Mike Lenhoff, a strategist at Brewin Dolphin.

Miners added the most points to the index against a backdrop of firmer metals prices, with Kazakhmys (KAZ.L), Vedanta Resources (VED.L), Xstrata (XTA.L), Antofagasta (ANTO.L) and Rio Tinto (RIO.L) adding between 4.3 and 6 percent.

Randgold Resources (RRS.L) put on 4 percent as gold XAU= hit a fresh lifetime high as the dollar retreated on expectations of continued ample money supply and low U.S. interest rates after the Group of 20 (G20) meeting over the weekend.

G20 finance ministers and central bankers pledged on Saturday to prepare strategies to end emergency support for their economies but to keep the aid flowing until recovery was assured. [ID:nL7204184]

The news gave banks a shot in the arm, with the sector also getting a boost ahead of third-quarter trading statements from HSBC (HSBA.L) and Barclays (BARC.L), which rose 1.3 and 1.9 percent, respectively.

Lloyds Banking Group (LLOY.L) gained 0.5 percent, Royal Bank of Scotland (RBS.L) added 6.3 percent and Standard Chartered was 0.8 percent firmer.

ENERGY BOOST

Energy stocks drew strength from a 3 percent rise in crude prices CLc1. BG Group (BG.L), BP (BP.L), Royal Dutch Shell (RDSa.L) and Tullow Oil (TLW.L) added 0.8 to 2.8 percent.

Life insurers were also in demand, as takeover speculation swept through the sector after Europe's second-largest insurer AXA SA (AXAF.PA) unveiled a planned $7 billion buy-out of its Asian assets and the sale of its Australian assets to local rival AMP Ltd. [ID:nSYD420146]

The sector was also helped by ING, which raised its price targets on European insurers, and forecast-beating results from Germany's Allianz (ALVG.DE).

Prudential (PRU.L) was the biggest gainer in the sector, up 5.2 percent, with traders saying AXA's decision to buy out its Asian shares highlighted the value of Prudential's Asian businesses.

Aviva (AV.L), which ING rates as "buy", added 3 percent, while Legal and General (LGEN.L), Standard Life (SL.L) and Old Mutual (OML.L) rose 3.7 to 4.3 percent.

Cadbury CBRY.L rose 0.4 percent. Kraft Foods' (KFT.N) chief Irene Rosenfeld stuck to her guns in the pursuit of the candy maker, refusing to sweeten her $16.4 billion offer.

Kraft repeated the cash and shares terms of its original approach, which Cadbury rejected two months ago, and took its bid, now worth 4 percent less after a fall in Kraft shares, directly to Cadbury shareholders.

Cadbury lost no time rejecting the "derisory offer", as Chairman Roger Carr called it.

Cable & Wireless CW.L was one of the three losers on the FTSE 100, shedding 1.6 percent after Morgan Stanley and RBS cut their price targets for the telecoms carrier after its first-half results on Thursday. (Editing by Karen Foster)