Footsie down as oil prices rise
The FTSE 100 Index fell back from a three-year high today as record oil prices sparked concerns over world economic growth.
The sight of a barrel of US crude rising above 59 US dollars in New York boosted the likes of BP and Shell – but weighed heavily on oil-dependent stocks like British Airways.
By mid-morning, the FTSE 100 Index stood 12.9 points lower at 5064.7, after hitting its highest level since June 2002 on Friday.
The latest increase in the cost of crude came after ongoing supply worries were compounded by a threat to Western consulates in Nigeria.
Gas exploration group BG was the biggest beneficiary, up 7.25p to 456.25p, while heavyweight Shell cheered 5.25p to 521.75p and BP gained 5p to 591.5p.
But British Airways was heading in the opposite direction, standing at the top of the Footsie fallers with a 6.75p decline to 270.75p.
Banks were also among those hard hit as investors failed to warm to an update by Lloyds TSB. The banking group saw its stock dip 6.75p to 468.75p as it said it was on track for a “satisfactory trading performance” but reported an increase in the number of its high street customers in repayment difficulties.
Rival Barclays was another faller, off 7.5p to 529.5p and Royal Bank of Scotland was 22p lower at 1649p.
Elsewhere, shares in department store group Beatties raced 24% ahead after it said it was in talks with rival House of Fraser about a takeover by the latter. Shares jumped 28p to 144p.
But film studio Pinewood Shepperton saw a fifth wiped off its shares as it issued a profits warning. Shares slumped 30.5p to 120p after Pinewood said it expected to report interim operating profits of about £2 million, slightly below market estimates.
