Oil stocks keep Footsie in positive territory
London’s leading shares managed to scrape into positive territory today after a boost from oil and energy stocks.
Heavyweights BG Group and Cairn Energy were the highest FTSE 100 climbers, both adding more than 2% to their market value.
This helped the Footsie advance 20.8 points at one point in the session, although it slipped back to end the day 4.9 points ahead at 5470.
The performance echoed sentiment across the Atlantic, where the Dow Jones Industrial Average was also broadly flat by closing time in London.
Oil firm Cairn Energy extended its recent rally to lift 44p to 1864p, but was beaten to the top of the blue-chip risers board by gas exploration group BG – up 13.5p to 534.5p.
Cairn was followed higher by larger oil rivals BP and Royal Dutch Shell. The pair, which make up around a fifth of the top flight, added 9.5p and 18p respectively to 628p and 1822p.
Utilities were also faring well with Scottish & Southern Energy setting the pace with a 9p gain to 1011p and International Power cheering 2p to 243.5p.
But the excitement was greatest outside the top flight where a surge by housebuilders on the back of takeover activity sent the FTSE 250 Index to a new all-time high of 8089.2.
The trigger was an approach for Westbury that led traders to speculate on which property developers will be next to become acquisition targets.
Westbury rose more than 12% or 62.5p to 556.5p as investors traded shares for the first time since it received a takeover approach from fellow housebuilder Persimmon on Friday.
It was followed on the FTSE 250 risers board by Persimmon, up 10% or 92p to a record 1042p, while hopes of consolidation boosted rivals including Bellway, up 48.5p at 999p, and Redrow, rising 20p to 485p.
The takeover spotlight was also on drug delivery firm SkyePharma, which rose 7% or 3.25p to 49.25p after receiving a surprise takeover approach. It has appointed Lehman Brothers to conduct a strategic review.
PD Ports was also on the rise after it reported a healthy improvement in container volumes and profitability, helping send shares 2p higher to 132p.
And convenience foods group Uniq gained 2p to 118.5p as it blamed an “unacceptable” performance by a new desserts factory for half-year losses of £9.6 million in the UK, but said it had taken steps to revive the business.
In contrast, investors in parcels and mail delivery firm Business Post were reeling from the news that annual profits are likely to be 20% below market hopes. Shares lost more than a quarter of their value, down 116.5p to 317p, meaning they have now halved in value in just three months.
The highest Footsie risers were BG Group up 13.5p to 534.5p, Cairn Energy adding 44p to 1864p, Morrisons up 2.75p to 176.25p and BP rising 9.5p to 628p.
The heaviest fallers were Cable & Wireless down 3.25p to 123.25p, Schroders off 17.5p to 892.5p, Schroders NV down 14p to 846p and British Land off 16p to 970.5p.
