Unilever limits FTSE drop
Shares in consumer goods giant Unilever rose 4% today after it said it had been successful in passing on higher commodity costs.
With investors cheered by better-than-expected third quarter sales, Unilever shares strengthened 72p to 1697p by mid-morning.
That was enough to top London’s blue-chip risers board, although the wider market was on the back foot after the FTSE 100 Index fell 27.1 point to 6694.5.
Last night’s quarter point cut in US interest rates was already factored in, while manufacturing figures in the UK did little to suggest that policymakers in the UK will be inclined to follow suit with a rate cut this year.
Many of the risers from a strong session yesterday were on the fallers board, including DSG International with a drop of 3.4 points to 126.1p.
Housebuilder Taylor Wimpey reversed some of the gains made yesterday on news of its progress with cost savings following the merger between George Wimpey and Taylor Woodrow earlier this year.
Shares today were off 2% or 5.25p at 242.25p, reflecting a weaker session for housebuilders in general. Barratt Developments dipped 18p to 634.5p and Persimmon fell 18p to 1031p.
The cost of crude rose above 96 US dollars a barrel in Asian trading on the New York Mercantile Exchange as a surprise drop in US crude stockpiles raises concerns about supplies over the winter.
BP shares were up 9.5p at 634.5p on the news, while rival Royal Dutch Shell lost an initial gain to stand 5p lower at 2090p. Natural gas producer BG Group rose 10.5p to 900p as analysts said strong trading in liquid natural gas, as seen in third quarter results today, may stir takeover interest.
Meanwhile, Tesco shares continued to benefit from yesterday’s Competition Commission report, with the stock up another half a penny at 488.5p.
