Oil stocks boost FTSE
A surge in the value of oil and mining stocks helped propel the FTSE 100 Index back above the key 5200 barrier today.
Strong gains by the likes of BP and Anglo American contributed to the Footsie lifting 65.5 points to 5207.6 – recovering much of the ground lost in recent weeks.
This week sees heavyweights such as BP and Royal Dutch Shell report on trading and investors seemed happy to build up their stakes in anticipation of improved results.
BP and Shell rose 10p and 31p to 616.5p and 1758p respectively on hopes that the oil giants will top expectations for their third-quarter performance. Their progress came in spite of lower crude prices as traders expected Hurricane Wilma to miss rigs in the Gulf of Mexico.
A series of miners topped the list of blue-chip risers as investors took the view that the recent sell-off in the sector had been overdone. Anglo American added 70p to 1575p, Xstrata rose 50p to 1340p and BHP Billiton advanced 28.5p to 807.5p.
Upbeat momentum from across the Atlantic also cheered investors, with the Dow Jones Industrial Average standing around 90 points higher by the close of trading in London.
At home, takeover activity added to the mood as catering giant Compass benefited from reports that it was a takeover target of US firm Clayton, Dubilier & Rice.
Shares in Compass ticked 4.75p higher to 179.75p as investors took an upbeat view of a company that recently suspended its head of its UK operations and warned on profits.
Pharmaceuticals giants AstraZeneca and GlaxoSmithKline were 16p and 12p higher at 2612p and 1428p respectively ahead of their trading updates on Thursday.
But the exodus of investors from prospective merger partners Alliance UniChem and Boots continued, with shares in the firms falling 6p and 1.5p to 759p and 609.5p.
It was a session of contrasting fortunes for retailers with Morrisons losing a penny to 167p, Dixons group DSG International off 0.25p at 140.75p and B&Q owner Kingfisher down 0.75p to 204p, although Tesco lifted 1p to 298.5p.
Elsewhere, Sci Entertainment rose more than 25% or 121.5p to 600p as investors anticipated a takeover battle for the computer games maker which has confirmed receiving bid approaches from a number of parties.
Potential merger and acquisition activity also explained the 6.25p rise to 351p by Marconi after reports said a winner in the battle for the struggling telecoms firm could be announced as early as this week.
Shares in Chorion advanced almost 6% or 17p to 316p after the company announced an extension of a deal with broadcaster Five for episodes of Noddy.
The highest Footsie risers today were Anglo American rising 70p to 1575p, Xstrata up 50p at 1340p, Capita Group rising 13.5p to 381.25p and BHP Billiton up 28.5p to 807.5p.
The heaviest fallers were Cable & Wireless down 1p to 107p, Alliance UniChem off 6p at 759p, Morrisons down 1p to 167p and Aviva losing 3.5p to 647p.
