Oil stocks push FTSE 40 points higher
The FTSE 100 Index soared by as much as 40 points today as buoyant oil stocks continued to push the London market higher.
Oil giant BP, which accounts for around 10% of the top flight, and key rival Shell benefited from crude prices lifting above 60 US dollars.
The gains ensured the Footsie set another three-year high, standing 39.3 points higher at 5229.4 by mid-morning.
Crude oil prices strengthened amid concerns about supply disruptions in the United States as a tropical storm pounded the Gulf Coast, forcing the evacuation of rigs in the Gulf of Mexico.
BP rose by almost 2% or 11p to 633.5p and Shell put on 6p at 569.75p.
A number of other heavyweight stocks were boosting the market with mobile phone operator Vodafone up by 2% or 2.75p at 139.25p and pharmaceuticals group GlaxoSmithKline 16p stronger at 1373p.
One of the few negative notes in the top flight was provided by the retail sector after a clutch of blue-chip high street names lost ground.
They included Argos owner GUS – down 21.5p to 845.5p, although this was in part due to investors losing the right to the latest dividend payment.
Morrisons fell 1.25p to 183.25p, Marks & Spencer slipped half a penny to 354.5p and Sainsbury’s eased 1p to 282p.
The retail weakness followed further caution from supermarket group Somerfield, which said trading conditions continued to be challenging.
Somerfield investors were cheered, however, by the company’s update that it was in “advanced” takeover talks with potential bidders. Shares were a penny higher at 192p.
Elsewhere, pubs and brewing firm Greene King experienced a mixed session after posting record annual profits of £94 million and reporting positive summer sales. The stock was in positive territory for a while, but later retreated to stand 11p lower at 1283p.
