Opec moves fail to lift London market

Moves by Opec to take the steam off oil prices failed to provide the London market with a late lift into positive territory today.

The market never recovered from the conclusion to the long-running takeover saga at Marks & Spencer as the FTSE 100 Index closed 31.9 points lower at 4340.7.

M&S shares led the list of top flight fallers after retail tycoon Philip Green dropped his proposed £9.1 billion takeover.

A fall of 5% – 19p to 345p – ended an upward run for the group’s shares, although many analysts had been braced for a more dramatic decline.

Oil prices nudged closer to record highs overnight and raised fears that profits of a number of market heavyweights would be hit by rising fuel costs.

British Airways was among the heaviest fallers, down 7.75p to 240.25p. ICI, which is also influenced by higher oil prices, fell 2.5p to 209p, while Rolls-Royce slipped 3p to 236p and BOC eased 3p to 922p.

But the decision by Opec to raise its daily production target by 500,000 barrels helped oil prices to fall 1% today and could allow the stocks to recover ground in coming sessions.

The move helped check the progress of oil giant Shell, which slipped 0.25p to 399.75p, although BP fared better with a 4p gain to 492p.

The highest climbers in the Footsie today were Hanson up 10.5p to 373.5p, Xstrata ahead 12.5p to 777p, Rio Tinto up 17p to 1392p and Smiths Group ahead 8p at 720.5p.

The heaviest fallers were Marks & Spencer down 19p to 345p, Reuters off 14p to 323p, British Airways down 7.75p to 240.25p and Rentokil Initial off 4p to 136p.