Footsie edges towards 4500 mark
The London market wrapped up a week of progress today by moving within touching distance of the 4500 barrier.
A further slide in oil prices below 43 US dollars a barrel provided the spark for the FTSE 100 Index to close 36.2 points higher at 4490.1.
It represented the Footsie’s seventh consecutive session of gains and the longest winning streak since January.
Investors took heart from official figures showing annual growth in GDP remaining unchanged for the second quarter, up 3.7% on the same stage last year.
That helped to make up for an absence of corporate news, although energy group National Grid Transco was near the top of the Footsie risers board with a 8.25p gain to 463.75p after broker Merrill Lynch said it was keeping its buy rating on the stock.
Merrill said the long awaited sale of up to four of the group’s regional gas distribution businesses appeared to be imminent, potentially realising more than £5bn (€7.5bn).
Oil giants BP and Shell were helping to prop up the top flight, up 12p and 6.25p at 497p and 406p respectively.
Business services group Rentokil Initial was also on the risers board, up 5p to 152p, as investors saw some value after shares fell yesterday following the company’s announcement that it would not split itself up.
Elsewhere, the departure of a key figure in the boardroom at airports operator BAA failed to unsettle shares, which were 5p higher at 562.5p. Brian Collie, who is credited with driving up retail sales for BAA, will leave later this year.
Shares in power group Scottish & Southern Energy improved 12.5p to 738.5p on news that it was launching a £24m (€36m) trial of an environmentally friendly wind farm in the North Sea.
Argos owner GUS was also ahead by 2.5p at 849p after outlining plans for the partial flotation of South African-based retailing business Lewis, which it has owned for more than 50 years.
Outside the top flight, dairy group Robert Wiseman was celebrating its second major milk contract in as many days after sealing a new deal with supermarket giant Tesco.
Shares in the FTSE Smallcap firm rose 6% or 12.5p to 236p, but rival Dairy Crest went into reverse – down 17% or 66p to 318p – after losing out in the latest reshuffle of supermarket contracts.
The Surrey-based firm lost more than £80m (€120m) of its market value as it warned the loss of its existing Tesco contract would knock £15m (€22.5m) a year from annual profits. Arla Foods, which also won a contract from Tesco, rose 0.75p to 50.5p as Tesco edged 1.5p higher to 268.5p.
The day’s biggest risers were Rentokil Initial, up 5p to 152p, Amvescap ahead 9.25p to 292p, BP lifting 12p to 497p and Legal & General adding 2.25p to 101.75p.
The biggest fallers were Smith & Nephew off 6p to 492p, Dixons down 1.75p to 155.5p, William Hill retreating 5.5p to 540p and Whitbread weakening 6.5p to 813.5p.
