BA loses out as oil prices surge
British Airways was the big loser on the London market today as the price of crude soared to new heights.
The "world's favourite airline" topped the list of top flight fallers as the FTSE 100 Index failed to stray far from its opening mark, ending the session 3.9 points up at 4626.6.
The cost of a barrel of US light crude rose to 55.33 dollars in New York before falling back to 54.48 dollars.
The volatile oil price sparked anxiety among investors amid continued concerns over winter fuel supplies, while the prospect of another rate hike by the European Central Bank also dampened spirits.
The Dow Jones Industrial Average was nearly 34 points off shortly after London's close.
Rising oil prices grounded shares in fuel-dependent BA, which fell nearly 3% or 5.5p to 200.5p.
However, the conglomerates that supply the oil were doing well, with BP and Shell both benefiting from the hike, advancing 2.5p and 1.25p to 546p and 421.5p respectively.
Shell's announcement that a major gas field off the north east Scottish coast had started production also boosted the oil giant.
Footsie newcomer Cairn Energy was also on the up, 8p ahead at 1499p, after receiving a declaration of commerciality from the Indian Government to enable it to develop oil fields in northern Rajasthan.
A cautious broker note on HBOS hit the financial sector as the City worried over the impact of a possible slowdown in the housing market. The Halifax-to-Bank of Scotland group slipped 11.5p to 748.5p.
Elsewhere, gases group BOC made gains following an unconfirmed weekend report that it was in merger talks with Germany's Linde. Shares rose 13p to 883p.
Telecoms group mmO2 was another strong riser, lifting 1.5p to 101.5p after a positive broker note on the former BT subsidiary.
Supermarket groups Morrisons and Sainsbury's were also in the spotlight over the weekend, with the former down 0.75p to 192.25p amid disappointment that it may sell 120 of its smaller stores for a less-than-expected £250 million.
And Sainsbury's fell 4.25p to 242p, ahead of a key strategy update from chief executive Justin King.
Outside the top flight, Manchester United shares were unmoved at 285p after sports tycoon Malcolm Glazer had increased his stake in the football club to more than 25%.
Computer games maker Eidos weakened 1p to 91.5p after warning it was delaying the release of a key title in the run-up to Christmas.
But casino operator Stanley Leisure saw its shares rise 9p to 428p after unveiling plans to build a casino complex next to Leeds United's Elland Road football ground.
Meanwhile, shares in specialist printer Wyndeham Press today picked up 1% or 2p to 131.5p after it said a shake-up was bearing fruit and forecast half year trading in line with expectations.
The day's biggest winners were Smith & Nephew, up 11p at 484p, British Land ahead 12p to 720p, ICI advancing 3.5p to 214p and AstraZeneca lifting 34p to 2137p.
Biggest fallers included British Airways, down 5.5p to 200.5p, Man Group losing 31p to 1273p, Reuters off 7.25p to 323p and Reed Elsevier 8.5p adrift at 483p.
