FTSE climbs closer to 5,000 points
Record results from BP helped the FTSE 100 Index creep even closer to the landmark 5000 barrier today.
Shares in the UK’s largest company rose 1% after it announced profits of 16.2 billion US dollars (£8.7 billion), adding to the rosy glow around the sector generated by Shell last week.
The Footsie ended the day 15.7 points ahead at 4995.5 – its highest close since the summer of 2002.
Extra momentum came from across the Atlantic, where the Dow Jones Industrial Average was 23 points higher by the time London closed.
Jimmy Yates, a trader at deal4free.com, said: “Without doubt 5000 on the FTSE is now within striking distance and psychologically this could prove to be a difficult level to break.”
In London, BP advanced 3p to 547p after the soaring oil price lifted its results performance and Cairn Energy was up 12p at 1147p. Rival Shell, which last week unveiled even bigger profits, also cheered 2.25p to 486.75p.
Significant gains came from the hotel sector after broker UBS issued a positive note on Hilton.
Hilton rose 5.5p to 310.25p, but was beaten on the risers board by rival InterContinental Hotels, which advanced 15p to 697p.
Favourable broker comments were also stoking interest in the tobacco sector, with Dresdner Kleinwort Wasserstein now urging investors to buy shares in BAT, which rose 10p to 982.5p. Silk Cut owner Gallaher and Imperial Tobacco also improved, up 15p and 21p to 827.5p and 1459p respectively.
In contrast, sugar group Tate & Lyle featured on the fallers board despite unveiling a deal to supply its sweetener to Diet Coke. Shares rose 7% yesterday but fell back 1% on today’s announcement, off 5.5p to 495.5p as the firm said the move would not materially affect short-term earnings.
Outside the top flight, gaming group Wembley cheered 9%, up 67p to 808p, after agreeing to offload its division in the United States.
Tool rental company Brandon Hire added 4p to 172.5p, a rise of more than 2%, as it unveiled record annual sales and profits after boosting the size of its business by a third.
Defence group Chemring moved up 24.5p to 436p after saying the determination of the Pentagon to protect military planes from missile attack was fuelling hopes of higher sales in 2005.
IT group EDS advanced half a penny to 83.5p as it said new business and cost-cutting had helped it back into tack in the fourth quarter.
However, telecoms equipment group Marconi was in the red as it reported a 5% lift in third-quarter sales but said margins this year would be towards the lower end of expectations. Shares fell more than 6%, off 41p to 585p.
The biggest Footsie risers today were Schroders up 24.5p to 793p, Schroders NV adding 18.5p to 718.5p, Bunzl up 11.75p to 476.75p and ITV adding 3p to 122p.
The heaviest fallers were Corus down 1.5p to 56.5p, Reckitt Benckiser falling 26p to 1581p, Kingfisher down 4.25p to 307.25p and Rio Tinto falling 22p to 1650p.
