FTSE still on the up
The London market today closed at levels not seen since the summer of 2001 as upbeat earnings from Enterprise Inns cushioned some shock news in the energy sector.
Enterprise Inns was the second highest riser in the FTSE 100 Index after posting a 32% rise in annual profits, with strong support coming from insurers and oil heavyweights such as BP.
This ensured the Footsie was able to spend the entire session in positive territory, closing 19.3 points to the good at 5517.2.
But its progress would have been higher had the lights not gone out on a potential takeover of Scottish Power.
Scottish Power fell more than 5% or 31p to 538p after Powergen owner E.On failed to secure its support for a takeover worth £11.3bn (€16.5bn).
A host of other utilities followed it on the blue-chip fallers board, with Centrica losing 2p to 238.5p and International Power down 0.25p at 241p.
Scottish & Southern Energy, which has been seen as a potential merger partner for Scottish Power, was in the red for much of the day but was unchanged at 1018p by the end of trading.
In contrast, Enterprise Inns was one of the best performers after lifting its dividend by 50% and claiming to have grown market share and profitability at a time when the sector experienced “highly competitive” conditions. Shares rose almost 3% or 25p to 889p.
The improvement in energy stocks came after the price of a barrel of oil rose to just below the $59 a barrel mark in New York.
Royal Dutch Shell lifted 19p to 1943p while BP added 10p to 663.5p, a gain of more than 1%.
Online gaming firm PartyGaming cheered 7% – up 7p to 106p – as traders continued to react positively to yesterday’s news that takeover talks with rival Empire Online had broken down.
British Airways advanced 2.5p to 305p after investors beefed up their exposure to the aviation sector following the upbeat news from smaller rival easyJet.
Shares in easyJet took off 11% or 33.5p to 340p after revealing profits rose to £68m (€99.3m) – ahead of earlier guidance of £62m (€90.6m).
Among other firms reporting results today, catering equipment maker Enodis disappointed investors despite restoring its annual dividend.
Shares weakened 4.5p to 127p as it said cost pressures would continue to squeeze its food retail equipment division selling fridge units to supermarkets and convenience stores across the Atlantic.
News from InterContinental Hotels that tourist bookings were recovering gradually in the wake of the London terror attacks was not enough to lift its stock, which slipped 0.5p to 788p.
The highest Footsie risers today were PartyGaming up 7p to 106p, Enterprise Inns adding 25p to 889p, Royal & Sun Alliance up 2.75p to 112.75p and Legal & General rising 2.5p to 114.25p.
The heaviest fallers were Scottish Power off 31p to 538p, Rio Tinto losing 53p to 2361p, Xstrata off 29p to 1370p and Morrisons losing 3.5p to 173.25p.
