Footsie rises as investors seek defensive stocks

The FTSE 100 Index has lifted 34.4 points to 5333.1 as investors move into defensive stocks.

The main focus in London is the performance of oil stocks, which rose sharply after the price of crude increased for the fourth day in a row.

Shell has edged up 1½p at 495½p while BP is 8½p stronger at 536½p. Other energy stocks on the rise include BG, which has moved 5½p higher to 262p. Innogy has risen 6¼p to 208p.

Medical and health stocks are also ahead, with Smith & Nephew rising 8% or 26¾p at 365¾p to top the Footsie risers board. AstraZeneca has lifted 93p at £32.40 while GlaxoSmithKline is a just 9p higher at £18.64.

Banking stocks making gains include Lloyds TSB, up 11p at 753p, Abbey National, ahead 15p at £10.85p, Barclays, 41p stronger at £22.63p and HSBC, which has risen 10½p at 849p.

But not everyone is benefiting from the Footsie's rise and tech, telecom and media stocks are all retreating after recent gains.

Vodafone is down 3p at 179¾p while Cable & Wireless is 5% or 18p lower at 349p. Negative sentiment surrounding the sector has also pushed BT Group down 7¾p to 279¼p although its former mobile phone business mmO2 gained 1¼p to 84¾p.

Arm Holdings is the biggest falling tech stock, losing 6% or 24¼p at 387½p to top the Footsie fallers board, while Sage has shed 8¾p at 246¼p.

Of the media stocks on the way down, Granada is off 5¼p at 143¾p and Reuters has fallen 20p to 766p.

Sainsbury has lost 1¼p at 385¾p despite reporting a 3% rise in first-half profits. But Tesco is ahead 5¼p at 246p and Safeway has risen 6¾p to 344¾p.