FTSE edges ahead in morning trading
London’s blue chips lacked direction today despite early gains for commodity-based stocks.
Opening gains for mining and oil heavyweights failed to provide momentum ahead of the weekend break, as the FTSE 100 Index stood just 8.1 points stronger at 6584.4 by mid-morning.
Asian-facing bank Standard Chartered was the exception, gaining more than 4%, or 79p, to 1800p to top the Footsie risers’ board. Investors waded in on renewed bid speculation after stake-building in a South African bank by the Industrial & Commercial Bank of China.
Miners, meanwhile, were buoyed by a mix of higher copper and nickel prices, as well as hopes of continued Chinese demand. Xstrata was up 77p to 1795p, with sector peers Rio Tinto – up 71p to 4306p – and Antofagasta, ahead 11p at 829p, also making gains.
Record oil prices approaching nearly 92 US dollars a barrel also lent weight to oil majors amid fears over supply and fresh Middle East tensions. Royal Dutch Shell advanced 37p to 2096p on the higher prices – and better than expected profits yesterday – while BP gained 6.5p to 619p.
The leading Footsie faller was British Energy, which was down 19p to 529p on rumours that the boiler problems announced by the company this week could lead to long-term delays. The talk sent the stock more than 3% lower.
Insurer Standard Life continued to lose ground amid investor doubts over the wisdom of its £4.9 billion approach for rival Resolution. The stock was down 7.25p at 269p as Resolution – up 0.5p to 710p – said it continued “advanced discussions” over the group’s offer.
Other Footsie fallers included supermarket giant Sainsbury’s, down 16.5p at 567.5p after a Takeover Panel deadline gave its Qatari suitor until November 8 to make a firm offer. Elsewhere in the sector Morrisons fell 6p to 296.5p.
