FTSE hovers close to three-year high
The FTSE 100 Index remained close to a three-year high today as the London market overcame a poor session for two of its biggest stocks.
Oil majors Shell and BP provided a downward pull, although the Footsie kept its nerve to stand just 3.5 points lower at 5238.9 by mid-morning.
A stronger oil price failed to inspire the energy sector, as investors instead focused on the fall-out from Hurricane Dennis in the Gulf of Mexico.
With the extent of damage to BP’s new platform Thunder Horse still uncertain, shares in the market’s biggest stock slipped 4p to 630p. Shell was 4p lower at 544.75p as investors also digested the company’s settlement of a claim by US employees following its reserves crisis of last year.
Gains by a mixture of blue-chip sectors helped overcome the falls, with telecoms companies among those in positive territory as Vodafone gained 1.5p to 142.5p and O2 cheered 1.75p to 137.5p.
With few top flight companies reporting in London, attention focused on companies in the lower tiers.
And the news was not good as updates from Provident Financial, Blacks Leisure and McCarthy & Stone all caused their shares to fall.
Retirement housebuilder McCarthy was off 18p at 549p after it said annual sales could be as much as 10% lower and profits weaker than the mid-point of £140 million forecast by a group of analysts.
Outdoor retailer Blacks lost 2% or 10p to 445p after it announced a fall in like-for-like sales and said it was not expecting a quick improvement in trading conditions.
The gloom stretched to Provident Financial, which warned that its Yes Car Credit business could lose as much as £20 million this year. Shares were almost 6% lower, off 42p at 693.5p.
On a brighter note, shares in set top box maker Pace Micro Technology lifted more than 2% or 1.25p to 63.25p after it unveiled a 37% rise in profits.
