Oil stocks provide boost for Footsie

Strong performances by oil giants BP and Shell are helping the Footsie index of 100 leading stocks to keep its head above water in a quiet session.

Hopes of firmer crude oil prices were boosted when Saudi Arabia said it would be cutting supply to Asia by 17% next month.

By lunchtime, the Footsie is up 25.8 points at 5453. BP is up 11½p at 601½p; Shell has gained 8½p to 555p; and gas group Centrica has climbed 3¼p to 220¼p.

They have been joined on the Footsie leader board by a mixture of old and new economy stocks, with Tesco up 5½p to 258¼p; and Australian logistics and transport group Brambles rising 7¾p to 344p on its fifth day on the index.

Tech stocks are also faring well, with chip designer ARM Holdings ahead 19¾p at 301½p; and computer services group Logica up 23p to 685p.

Concern over the impact of tough trading conditions has led to Marconi falling 3½p to a new low of 82¼p; Colt Telecom dropping back a further 6p to 296p; and United Utilities, which also has a telecoms arm, falling 24½p to 635½p.

Footsie 250-listed advertising group Cordiant is up 7% or 10½p to 160p after reporting half-year results in line with expectations and warning of more job cuts to follow the 400 posts it axed earlier this year.

Wolverhampton & Dudley is up 1p at 495p as the market waits to hear whether the group will be bought up by privately-listed Pubmaster. Shareholders had to declare their support or opposition to Pubmaster's hostile £485m bid by 1pm, and an announcement is due later.

Ceramics group Royal Doulton has seen its share price rise by 10% or 4p to 44p following reports that venture capital group Alchemy is poised to make a bid.