Footsie edges towards 5300 mark
Rising energy stocks put the FTSE 100 Index back within a whisker of the 5300 barrier today.
The latest gains for Shell, BP and BG Group came as continued worries about the impact of Hurricane Katrina kept the price of oil near 70 US dollars a barrel.
With energy companies accounting for 20% of the top flight, the FTSE 100 Index closed 41.1 points higher at 5296.9 – the second session in a row that it has achieved significant gains.
The recent improvement, which followed several days of weakness, also left the Footsie within 100 points of its three-year high set earlier this month.
Among the energy stocks, BP and Royal Dutch Shell rose by 10p and 39p respectively to 632p and 1881p. Exploration company BG added 7.5p to 499.5p.
Companies dealing in commodities were doing well across the board, with miner Anglo American prominent among the risers – up 25p at 1402p – and Antofagasta 12p stronger at 1462p.
Directories group Yell proved to be the session’s strongest riser – up more than 4% or 19.75p to 451.75p – as hopes were raised among analysts that it could escape being harshly dealt with by regulators in a probe into its market. The optimism came after the Competition Commission published the areas it intends to investigate as part of a lengthy inquiry into the sector.
The telecoms sector was also doing well after a broker upgrade boosted O2 by 3.5p to 153.25p, a rise of more than 2%, as investors latched on to comments that the former BT subsidiary continued to be an attractive bid target. Vodafone was 1.25p stronger at 151.75p.
But supermarket chain Morrisons was heading the other way after it agreed to sell 30 petrol filling stations to Tesco. Morrisons shares dipped 2.25p to 180.25p as analysts expressed disappointment that the retailer had sacrificed a slice of the lucrative convenience store sector. Tesco rose 1.25p to 326.25p.
Whitbread was another faller, down 7.5p to 994.5p, as investors prepared for the release of a trading statement from the leisure group tomorrow.
Elsewhere, discount retailer Matalan rose almost 2%, or 3.75p to 202.25p, after reporting improved margins and signs of a recovering trend for like-for-like sales. Despite that, half-year same-store sales were still 6.4% lower.
Among others in the spotlight, film studio Pinewood Shepperton held firm at 128.5p even though it told investors that uncertainty over tax breaks for the movie industry would continue to hurt trading into 2006.
And support services group Serco surged 6% – up 15.75p to 268.5p – as it said market conditions “remained strongly” in its favour with numerous opportunities to expand in the UK and overseas. Profits for the half year were 27% higher.
The biggest Footsie risers were Yell Group up 19.75p at 451.75p, Exel ahead 30p at 1005p, O2 up 3.5p at 153.25p and Royal Dutch Shell ahead 39p at 1881p.
The biggest fallers were Standard Chartered down 16p at 1185p, Morrisons off 2.25p at 180.25p, Carnival down 28p at 2873p and GUS off 8.5p at 910p.
