Shell and BP help FTSE push ahead
Shares in oil giant Shell surged 3% today as one of the FTSE’s biggest stocks prepared for the most important meeting in its 100-year history.
With heavyweight rival BP and mining stocks also in positive territory, the FTSE 100 Index advanced 28.5 points to 5072 at mid-morning.
The improvement was stronger than many analysts had been expecting and came after two disappointing sessions for the London market.
Shell rose 16.5p to 544.5p as investors looked forward to a new era for the oil giant as a unified company, with sentiment also boosted by crude prices staying close to a record high.
Experts said the merger of Royal Dutch Petroleum, with its headquarters in The Hague, and London-based Shell Transport, was expected to get approval of shareholders at separate annual meetings.
BP shares were ahead by 10.5p at 594.5p as oil prices lingered near the $60 mark on supply fears and the surprise election of a hard-liner as president of Iran.
Miners were being paced higher by BHP Billiton, up 13p at 717.5p, as investors continued to salivate at record metals prices.
Logistics group Exel cheered 9.5p to 829p after it said earnings in 2005 so far were strongly ahead of the previous year.
Retailers were in focus in the lower tiers, with HMV rising 4% or 9.25p to 238.75p after sounding an upbeat note on its prospects due to a strong release schedule for albums, DVDs and books.
Floor coverings group Carpetright was also 8% higher – up 68.5p to 967.5p – as it pledged to continue with its store expansion plans and unveiled a smaller profits fall than the market was expecting.
Department stores group James Beattie rose 12% or 17p to 163.5p after agreeing to be taken over for £69.4m (€104.5m) by House of Fraser, which rose half a penny to 105p.
