Oil price surge impacts on FTSE
Hopes of an end to the London market’s week-long losing streak were wrecked today by a poor session for insurers and another oil price hike.
The FTSE 100 Index initially rose following a strong end to the week in New York but any momentum was soon lost as the top flight swung 11 points lower before reaching mid-morning 0.2 points lower at 4622.5.
Rising oil prices pushed British Airways to the top of the Footsie fallers board – down 4.25p at 201.75p – while more falls were seen in the insurance sector following a major lawsuit in the United States on Friday.
Among insurers, Prudential fell 3.25p to 459p while Norwich Union owner Aviva eased 4.5p to 542p.
The financial sector was also hit by a cautious broker note on HBOS as the City worries over the impact of a possible slowdown in the housing market. The Halifax-to-Bank of Scotland group slipped by more than 1%, off 11.5p to 748.5p.
Elsewhere, gases group BOC made gains following an unconfirmed weekend report that it was in merger talks with Germany’s Linde. Shares rose 12.5p to 882.5p.
Telecoms group mmO2 was another strong riser, lifting 2p to 102p after a positive broker note on the former BT subsidiary.
Supermarket groups Morrisons and Sainsbury’s were also in the spotlight over the weekend with the former down 1.5p to 191.5p amid disappointment that it may sell 120 of its smaller stores for a less-than-expected £250m (€361.2m).
And Sainsbury’s fell half a penny to 245.75p, ahead of a key strategy update from chief executive Justin King.
Outside the top flight, Manchester United shares eased from the four-year high seen on Friday after sports tycoon Malcolm Glazer had increased his stake in the football club to more than 25%. The stock slipped 3.5p to 281.5p.
