FTSE buoyant despite oil price surge
Sky high oil prices failed to dampen the mood of investors today as the FTSE 100 Index broke through the 4700 barrier.
By mid-morning the Footsie stood 29.5 points higher at 4711.4, continuing a recent run of luck sparked by a positive start to the fourth earnings quarter.
Although the cost of crude peaked at $50.40 in New York – just a fraction off last week’s record of $50.47 – a range of stocks including banks and telecoms groups were in the black.
The upbeat mood followed a positive session on Wall Street, where the Dow Jones Industrial Average ended the session nearly 24 points to the good at 10216.5.
Back in London, the rising cost of crude helped lift BP to the fourth position on the Footsie risers board, up 10p to 544.5p. Rival Shell also added 4p to 416p. Footsie newcomer Cairn Energy was not so lucky, however, losing 8p to 1475p.
Barclays was the biggest winner among the banks, advancing 9p to 565p, while Northern Rock added 11p to 761.5p, Royal Bank of Scotland rose 20p to 1657p and Lloyds TSB moved up 4.5p to 448.25p. Other financial stocks in upbeat mood included Prudential rising 7.75p to 483.25p.
Telecoms stocks were also in the black, with Vodafone adding 1.5p to 138p and mmO2 up 1.25p to 102.25p.
On a slow day for corporate news in London, ailing retailer Marks & Spencer provided the main interest by announcing the completion of a key step in its turnaround strategy.
The group said it had paid £125m (€181.5m) for the per una clothing brand, which was formed as a joint venture between M&S and former Next boss George Davies. M&S shares gained 0.75p to 345.75p.
Outside the top flight, shares in Game Group lifted 0.75p to 63.5p after it announced widening losses in the first six months, but gave an upbeat assessment of prospects for its traditionally important second half.
But music promoter Mean Fiddler saw its shares slump 21% after shocking investors by ousting its new chief executive and saying a newly-appointed chairman would not be joining the board. Shares fell 11.5p to 42p.
