Oil price fall helps FTSE
A sharp fall in the cost of oil helped lift the FTSE 100 Index to yet another 28-month high today.
The Footsie was 15.2 points higher at 4743.5 by mid-morning, as it built on this week’s rally prompted by the result of the US presidential election.
The improvement also came after a surge in stocks across the Atlantic, where the Dow Jones Industrial Average soared 177 points last night.
A fall in the cost of a barrel of crude oil in New York to $48.87 - well below its recent record of more than $55 – was greeted warmly by traders in London.
The highest top flight riser was oil-dependent stock British Airways, nearly 3% higher with a gain of 6p to 221.5p. Rolls-Royce was also in the black, up 0.75p to 263.5p.
Shire Pharmaceuticals recovered from heavy falls sparked by disappointment at yesterday’s 8% hike in profits, to advance 9p to 528.75p.
In contrast, the fall in crude dented oil stocks, with BP off 6p to 536p and rival Shell 1.75p lower at 434p. Cairn Energy was the heaviest faller with a drop of 25p to 1470p.
Most corporate news came from outside the top flight, with low-cost airline easyJet 3p higher at 174.75p after saying it carried 2.4 million passengers last month.
But energy group International Power fell 2.75p to 154.5p as it unveiled a drop in third quarter profits despite a strengthening in forward power prices in the UK.
And a rise in third quarter profits before tax and exceptionals to £22m (€31.5m) from £5m (€7.1m) last time was not enough to boost electronics and ceramics group Cookson, which was half a penny lower at 34p.
Furniture group MFI continued to benefit from speculation that a bid could be on the cards, adding 3.75p to 111.75p.
