Telecom and oil stocks push FTSE forward
The FTSE 100 Index made a return to positive territory today despite significant falls by a clutch of mining stocks.
Broker Merrill Lynch downgraded the mining sector due to the impact of the weak US dollar and rising input costs, leaving heavyweights such as BHP Billiton and Rio Tinto in the red.
But gains by telecoms and oil stocks helped the Footsie stand firm, 11 points higher at 4733.8 by mid-morning.
BHP Billiton was the third heaviest faller, off 10.5p to 580p, followed by Rio Tinto weakening 24p to 1468p and Anglo American down 18p to 1176p.
Progress across the board was held back by the renewed threat of high oil prices and the impact of the weak dollar.
Oil prices have been squeezed higher by speculation that oil cartel Opec will cut production to bolster prices when ministers meet this week. A hostage crisis in Saudi Arabia also forced the price of crude back on an upward path.
Telecoms giant mmO2 was among those keeping the Footsie in the black, rising 2.5p to 122.75p after investors warmed to comments from Goldman Sachs. BT also featured high on the risers board, lifting 3.25p to 204.5p.
Oil giant BP made headway as investors in the stock warmed to the higher cost of oil, lifting it 3.5p to 516.5p, but rival Shell was off 0.25p to 433.75p.
