London shares get off to good start

London’s leading shares got off to another good start today before seeing early gains tail off as oil giants BP and Shell dragged the FTSE 100 Index back towards its opening mark.

The benchmark index hit a fresh year-long high minutes after opening but the Footsie eased to stand just 2.9 points stronger after an hour’s trading at 4275.

After yesterday’s strength, energy stocks fell back as investors tracked the decline of world oil prices overnight.

BP lost 2.75p at 56.75p while Shell dropped 2.25p to 411.5p. Both had climbed yesterday as US soldiers in Iraq battled a pipeline fire which severed the country’s oil exports to Turkey.

A suspected sabotage attack on the pipeline had seen the price of Brent crude - a key industry measure – rise before sliding back as uncertainties about world supplies eased.

Elsewhere, on another quiet day for corporate news in London, Financial Times owner Pearson was up 9p at 619p with other media stocks close behind.

Broadcasters Granada, 1.5p better at 108.5p, and BSkyB, 6p higher at 703p, were doing their best to prop up the top flight.

Outside the Footsie, Celltech was attracting attention for the wrong reasons.

Britain’s biggest biotechnology firm headed the second tier fallers with a 13p slide to 355p after exceptional charges disappointed investors in its first half update.