Footsie on the up
Broadcaster ITV led the FTSE 100 Index to a positive close today despite conflicting signals over the likely path of interest rates.
ITV shares were the biggest blue-chip riser, bouncing 6% after regulator Ofcom proposed cuts in the amount broadcasters pay for TV licences.
The Footsie ended the session 18.7 points higher at 5109.1, taking it back up towards levels not seen in three years.
Analysts said an “absolutely shocking” slump in retail sales revealed in a survey today would shore up support at the Bank of England for an early cut in rates.
But the figures from the CBI left many in the City scratching their heads as the Bank revealed that consumers doubled the amount of money borrowed on their credit cards in May.
The Footsie received a small boost from trading across the Atlantic, where the Dow Jones Industrial Average gained around 10 points by the close in London.
ITV lifted 6.5p to 122.5p after Ofcom said it should expect to pay less than £80 million this year – compared with £215 million in 2004.
Removal of the uncertainty over licence fees was reflected elsewhere, with Scottish TV and Grampian TV owner SMG rising 1.25p to 96.25p because its fees are expected to fall from £5 million to as low as £1 million this year.
A fall in the price of a barrel of light crude oil to 57.60 US dollars in New York was reflected on the market today, with interest ignited in stocks such as British Airways but depressed in oil giants BP and Shell.
BA cheered 2p to 267p, shaking off recent weakness in its share price caused by negative reaction to its decision to raise the fuel surcharge on flights booked in the UK.
But events on the petroleum exchanges did little to enthuse investors in oil giants BP and Shell, which fell 8p and 6.5p to 587p and 538.5p respectively.
Airports operator BAA rose 23.5p to 622p as investors spotted a buying opportunity in a bad run for its shares recently.
Daily Mail & General Trust shares ticked up 7p to 662.5p after its Northcliffe regional newspapers revealed plans to close four printing presses ahead of a further programme of investment.
Elsewhere, shares in property consultancy Savills dropped 5p to 673.5p as positive news of a strong investment property market was offset by lower residential volumes than last year.
Spirent improved more than 5% or 2.5p to 48.5p after the telecoms equipment group said it was cutting 180 jobs as part of an overhaul of its telephone network monitoring arm.
Ports and ferries group P&O added 1.25p to 320.25p as it raised £378 million from the sale of its stake in Royal P&O Nedlloyd.
The highest Footsie climbers today were ITV up 6.5p to 122.5p, BAA rising 23.5p to 622p, Cable & Wireless up 5.5p to 148.5p and O2 adding 3.25p to 132.25p.
The heaviest fallers were BOC down 18p to 1025p, BG off 7.25p to 464.75p, BP down 8p to 587p and EMAP off 10.5p to 783.5p.
