FTSE gives up gains
An about-turn for oil prices caused the FTSE 100 Index to give up impressive gains from earlier in the session today.
BP was among the strongest risers for much of the day, but closed unchanged at 536.5p after crude oil prices lost their momentum and headed back towards 50 US dollars a barrel.
The developments were mirrored by the Footsie, which rose by as much as 53 points before ending up 5.8 points higher at 6210.3.
Mining stocks were more resilient, as Xstrata held on to gains by closing 46p stronger at 2289p and Kazakhmys finished 6p higher at 1026p.
Bid speculation was again a feature of the session, as investors responded to reports of private equity interest in pubs owner Enterprise Inns. Shares were at the top of the risers board after a gain of more than 4%, or 27p to 658p.
Elsewhere, Currys owner DSG International stemmed the decline for its share price after yesterday’s trading update caused the stock to slide 12%.
With Comet rival Kesa Electricals painting a more encouraging picture of trading, shares in DSG rallied 3.25p to 174.25p, a gain of 2%.
Kesa, a FTSE 250 Index stock, also rose 3p to 346p, as it delivered Christmas and New Year sales growth of 6.4% on a like-for-like basis. Among other top flight retail shares, Alliance Boots gained 22.5p to 796.5p.
Cruise ship firm Carnival was on the crest of a wave after a survey from a trade body pointed to a strong start to the sector’s key booking season. Shares were up 21p at 2759p.
And housebuilder Persimmon rose 29p to 1429p as mortgage approval figures pointed to continued strength in the property market.
Telecoms stocks peppered the fallers board after Goldman Sachs issued a cautious sounding note on prospects for the sector in 2007. BT was down 3.25p to 309.75p as Goldman raised its price target but kept its sell rating.
It was more positive about Colt Telecom, which meant the stock led the FTSE 250 Index risers board with a gain of 5%, or 8.75p to 170.75p.
Software firm Misys delivered one of the strongest gains in the second tier after new boss Mike Lawrie said there was potential for the company to deliver much greater growth. While half-year operating profits fell £5 million to £36 million, shares gained 9.75p to 237p.
Mothercare shares were lower after a disappointing Christmas trading update from the retailer, including a negative like-for-like performance in UK shops. The group’s recovery has forced shares higher in recent months, but this came to an end today with a drop of 5.5p to 378p.
The biggest Footsie risers were Enterprise Inns up 27p at 658p, Alliance Boots ahead 22.5p at 796.5p, InterContinental Hotels up 35p at 1255p, Smith & Nephew ahead 13.25p at 561.75p.
The biggest fallers were Amvescap down 11.5p at 610.5p, Scottish & Newcastle off 9p at 546p, British Land down 20p at 1550p and Bradford & Bingley off 5.5p at 463.5p.
