Performance of energy companies spark FTSE revival
A strong performance from energy companies on the back of a rise in the price of crude oil ensured the London market regained lost ground today.
After an uncertain start when the FTSE 100 Index struggled for direction, a broker upgrade for Norwich Union owner Aviva also helped push the index forward, leaving it 7.5 points higher at 5772.5 by lunchtime.
As crude oil rose more than a dollar today following a rally on Friday, Royal Dutch Shell lifted 2% or 28 to 1852, BP was up 7.5 to 641.
There was also strong progress among mining stocks following gains of 15.5 to 1040.5 for BHP Billiton and 11 to 1133 for Kazakhmys.
Airports operator BAA was exciting interest as it emerged that an Australian asset manager had joined the Goldman Sachs consortium currently evaluating whether to mount a takeover of the blue-chip company.
Shares rose 6 to 911, a gain of almost 1% as investors also took up positions ahead of tonight’s deadline for rival group Ferrovial to announce a higher offer. Goldman has until Friday lunchtime.
Elsewhere in the airlines sector, BA shares lost some altitude following a fall of 7.75 to 340. The drop came amid signs that a deal to close a huge deficit in its main pension scheme may not be far away.
For Aviva, shares were more than 1% higher after Deutsche Bank raised its rating on the stock from hold to buy and said a 15% discount to its peers appeared “unjustified”. The rest of the sector failed to benefit with Prudential down 3 at 582 and Legal & General off 1.25 at 126.
Elsewhere, a sparkling performance from celebrity jewellery Theo Fennell saw its shares soar 35%, or 13.5 to 52.5.
The group reported a record seven-fold increase in pre-tax profits and said it was still in talks with investors over a possible deal for part of the business. It also plans to continue with an aggressive expansion overseas and in the UK.
Chocolate retailer Thorntons saw a rise of 2% to 118.5 as investors cheered the appointment of John von Spreckelsen as its new executive chairman. Mr von Spreckelsen was a key player in the revival of Somerfield.
Shares in Photo-Me International, a leading maker and operator of passport booths and digital picture kiosks, rose 19% to 102.5 after it confirmed it was considering a sale of the business.
