Oil dependent stocks fall on FTSE
Oil-dependent stocks weighed on the FTSE 100 Index today following the latest rise in the cost of crude.
British Airways and chemicals giant ICI were both among the heaviest fallers as the threat of Hurricane Rita pushed the price of a barrel of oil above $67 in New York.
This contributed to limited progress by the FTSE 100 Index, which rose 8.4 points to 5378.1 by mid-morning after heavy losses by stocks across the Atlantic last night.
In London, British Airways lost 3.5p to 285.25p and ICI weakened 4p to 289.25p.
However, engineering firm Smiths was the biggest faller despite an upbeat set of annual results. Shares dropped 23p to 929p even though it said its four divisions of aerospace, detection, medical and speciality engineering all contributed higher earnings.
There was a mixed performance by oil stocks despite the latest rise in the cost of crude, with BP losing 4p to 659p but rival Royal Dutch Shell advancing 14p to 1928p.
Broadcaster ITV was another heavy faller, off nearly 2% or 2p to 109p. ITV said yesterday that the head of its broadcasting division would step down as part of a management reshuffle.
In contrast, a string of miners were trying to boost sentiment with BHP Billiton rising 12.5p to 870.5p and Anglo American up 19p at 1624p.
Today’s corporate news put smaller stocks in focus. Clothing and home furnishings retailer Laura Ashley lifted 2% or 0.25p to 13.25p after saying a cost-cutting drive had helped shape up the business.
But bookshop chain Ottakar’s failed to move from its opening mark of 440p after reporting its own first-half results.
The group, which is the subject of a takeover battle involving retailer HMV, said high street trading had deteriorated over the summer but that it had fared “relatively better” than other chains.
