Footsie down despite oil stocks boost
Progress by oil heavyweights BP and Royal Dutch Shell failed to lift the FTSE 100 Index to a new four-and-a-half year high today.
The pair, which together account for about a fifth of the Footsie, both saw their market value rise by around 2% but this was not enough to inject life into the wider market.
The Footsie closed 7 points lower at 5779.8 as investors struggled to find the momentum to take the index to the next landmark threshold of 5800.
Lacklustre sentiment came from a range of sectors and also from across the Atlantic, where the Dow Jones Industrial Average was broadly flat by the close of trading in London.
Jimmy Yates, a trader at CMC Markets, said: “The 5,800 level seems to be providing some significant resistance just now and there’s a degree of uncertainty as to where the next upside for stocks will come from.”
Royal Dutch Shell was in the black amid hopes sky-high oil prices will help it report record profits for a British company later this week. Its shares lifted 42p to 2002p as American rival Exxon Mobil cheered investors with its record takings.
Shell was beaten to the top of the Footsie risers board by rival BP, up 16.5p to 682p.
National Grid also made progress after naming a successor to chief executive Roger Urwin when he retires at the end of this year. Shares added 13.5p to 577.5p as it said Steve Holliday, who has been with the firm since 2001, would take over.
However, stocks from a range of sectors failed to emulate this progress. They included banking groups Barclays and HBOS – down 11.5p and 16.5p to 601p and 978p respectively – as a rally by the sector last week came to a halt.
Online gaming group PartyGaming led the blue-chip fallers with losses of neary 6%, down 8.25p to 132.75p, and was followed by pubs group Enterprise Inns, down 22.5p to 920p.
Outside the top flight, HMV lifted 17% – up 27.75p to 192p – as it said a third party was interested in mounting a takeover bid. Reports suggested private equity firm Permira was behind the approach and had hired banking heavyweight Merrill Lynch to advise it on a possible £800 million offer.
In contrast, telecoms equipment maker Filtronic slumped 31% as it said it was looking for its second chief executive in 18 months as half-year losses more than doubled. Filtronic lost 76p to 168.5p.
And beleaguered music management firm Sanctuary fell 0.27p to 0.78p after saying a planned £110 million fundraising would significantly dilute existing shares, as it revealed losses spiralled after the worst year in its history.
The highest Footsie risers today were BP up 16.5p to 682p, National Grid rising 13.5p to 577.5p, Old Mutual up 4p to 190p and Royal Dutch Shell rising 42p to 2002p.
The heaviest fallers were PartyGaming down 8.25p to 132.75p, Enterprise Inns off 22.5p to 920p, Xstrata down 37p to 1598p and BAE Systems off 9.25p to 416.75p.
