Oil concerns sees London freefall continue
Concerns over sky high oil prices and the situation in Iraq sent London shares into another tailspin today.
Although the FTSE 100 Index recovered some of the ground lost in early trading, it only just scraped past the 4400 barrier to close 38.8 points lower at 4403.0.
The losses, which mirrored activity in New York, followed the assassination of the head of Iraq’s governing council and four small bomb blasts in Turkey.
The impact of recent oil price hikes on corporate profits was brought into focus by British Airways, which warned higher fuel prices would cost it an extra £150m (€221m) this year.
Only 14 blue-chip firms struggled into positive territory today, led by brewer Scottish & Newcastle which rose 4.5p to 416p.
Supermarket giant Tesco followed it on the way up as it published its annual report, confirming directors and staff would share a rewards package worth almost £200m (€294m).
Shares in the group advanced 2p to 247.5p.
However, sky high oil prices took their toll on a number of Footsie companies.
Better-than-expected profits and extra savings from its cost-cutting drive could not prevent BA sliding 3.5p to 243.25p.
Engines giant Rolls-Royce was one of the heaviest fallers – off 6.5p to 211.5p - despite announcing that the engine that will power the 555-passenger superjumbo Airbus A380 plane has successfully completed its first flight.
Financial stocks and insurers were all in the red with Friends Provident declining 2.75p to 134.25p,
Aviva weakening 4p to 508p and Legal & General down 1.5p at 88.75p.
And an upbeat statement from William Hill did little to help its stock – off 2.5p to 537.5p. The bookmaker said a losing streak among punters betting on horseracing helped it score a strong start to the year.
The rocketing price of crude offered negligible support to oil giants Shell and BP, which fell 5p and 2.25p to 398.75p and 493.5p respectively.
The biggest Footsie risers today were Scottish & Newcastle advancing 4.5p to 416p, Tesco lifting 2p to 247.5p, Imperial Tobacco 9p higher at 1252p and Bunzl up 3p to 481.25p.
The heaviest fallers were Sage off 6p to 164p, Rolls-Royce falling 6.5p to 211.5p, Hilton down 7.25p to 236.25p and Schroders NV retreating 15p to 520p.
