Footsie close to breaking 4200 mark
Financial and oil stocks put the FTSE 100 Index within touching distance of breaking the 4200 barrier for the first time in two months today.
The Footsie stood 24.2 points higher at 4172 at lunchtime after getting a leg up from a strong finish to trading in New York on Friday night.
Even a lacklustre session for corporate news and disappointing UK trade figures failed to disrupt the upward momentum for London stocks.
The improved sentiment for world markets buoyed financial firms with a clutch of heavyweight companies also benefiting from the recent results season.
HSBC led the way with a gain of 10.5p to 781.5p while Barclays lifted 5.5p to 485.5p and Lloyds TSB cheered 3.25p to 443p. Among the insurers, Friends Provident gained 1.25p to 133.25p and Aviva added 4.25p to 487.5p.
Meanwhile oil majors Shell and BP made stronger gains as energy prices continue to hold their recent strength.
Shell rose 11p to 410p, outflanking BP which added 6.5p to stand at 442.25p.
But both were put in the shade by retailer Kingfisher as the B&Q owner benefited from a positive broker note and the impact of the heatwave on sales.
Shares lifted 8p to 275.5p while rival Dixons added 3.25p to 126p.
And with the Competition Commission due to make its recommendations on the drawn-out race to take over Safeway tomorrow, supermarkets were back in focus.
Comments by Safeway boss Carlos Criado-Perez in today’s press saying that a tie-up with William Morrison could make a strong combination did little for Morrison shares which fell 2.25p to 187.75p while Sainsbury’s lost 4.25p at 282p and Tesco eased 2.5p to 220.5p. Safeway itself lost 3.25p at 263.75p.
There were also more gains for Friday’s highest climber BSkyB after it was confirmed that it had landed a £1bn (€1.41bn) football rights deal. Shares gained another 7.5p at 720p.
But the only major corporate news today did little to impress the market.
Airports operator BAA lost 7p at 471.25p despite saying that the BA strike at Heathrow had failed to prevent it posting its second strongest set of monthly traffic statistics. It also unveiled a £425m (€600m) convertible bonds issue.
Mobile phone giant Vodafone also remained little changed – up 0.25p to 118.5p - following its deal to buy Singlepoint from entrepreneur John Caudwell.
