BG Group helps FTSE towards 5800
The FTSE 100 Index powered back towards the 5800 mark today after a bullish earnings forecast from gas exploration firm BG Group.
Shares in the company lifted 9% as it raised its earnings growth outlook to 2009 for the second successive year.
BG topped the Footsie risers board with gains of 55.5p to 673p as the top flight moved up 67 points to 5792.1 by mid-morning.
Elsewhere, there was a further gain of 4% for airports operator BAA, even though it announced a lacklustre set of traffic figures. Analysts were instead focused on yesterday’s takeover developments, as shares rose 29.5p to 782p.
Banking stocks were in favour again as speculation over a foreign bid for Lloyds TSB lifted its shares 16.5p to 549.5p, while Royal Bank of Scotland gained 54p to 1800p.
It was a busy session of corporate results with good news from Unilever, although figures from ICI, and Rolls-Royce and telecoms giant BT failed to cheer investors.
Unilever was among the risers – ahead 2%, or 10p to 606p – after announcing “solid” full-year results and adding that it planned to sell most of its frozen foods operation in Europe.
But BT lost early gains to fall 1.5p to 211p despite third-quarter earnings of £1.4bn (€2bn) beating market hopes.
Shares in engine maker Rolls-Royce were also on the slide – down 4.75p to 438.75p – but traders blamed profit taking after a lengthy strong run as opposed to disappointment over profits, which jumped 49% in 2005.
ICI fared even worse with its shares falling 4% or 13.5p to 340.5p after its fourth-quarter results were weaker than expected.
It was followed down by Tesco whose shares slipped 10p to 317p as it surprised investors by announcing a move into the United States market.
