FTSE climbs almost 50 points

Signs that oil prices may be on the skids and a strong start on Wall Street enabled the London market to rack up big gains today.

Fears of supply disruptions in the key oil producing country of Venezuela were eased by a referendum that backed President Hugo Chavez.

This forced the cost of a barrel of crude below Friday’s closing price and drove British Airways to the top of the risers board, up 4% or 8.5p at 216.25p.

The FTSE 100 Index closed 48.7 points higher at 4350.2, with mining companies and media stocks also among the highest climbers.

Across the Atlantic, the Dow Jones Industrial Average added more than 100 points in early trading as traders used the slight fall in oil prices to snap up cheap stocks.

Shell was prominent on the risers board in London as investors pondered weekend speculation of a possible takeover approach from French group Total. Shares rallied 8.75p to 399.25p, while BP gained 6.25p to 493.5p.

A clutch of other sectors were in positive territory with media stocks on the rise, led by Reuters adding 9.5p to 298p. Lehman Brothers had tipped the stock to achieve quarterly revenue growth during 2005 and annual growth by 2006.

Others advancing in the sector included advertising giant WPP, which moved 18p higher to 489p ahead of results later this week.

Miners also bolstered the top flight with Anglo American ahead 47p at 1244p, Xstrata 29p stronger at 799p and BHP Billiton up 14.75p at 523.25p.

Other blue-chip stocks making progress included Sainsbury’s, which rose 1% or 0.75p to 257.25p after bolstering its neighbourhood portfolio with a deal to buy 114 northern-based Jacksons Stores outlets.

But British Gas owner Centrica saw its stock slip 0.75p to 241.75p after reports said it was in talks to buy drain cleaning business Dyno-Rod.

Outside the top flight, online travel agency Ebookers saw its shares soar more than 14%, up 17.5p to 140p, as it encouraged investors with a positive trading update following its profits warning last month.

Positive sentiment in the sector also benefited lastminute.com, whose shares pushed ahead by nearly 7% or 7p to 111.5p.

Coffee Republic was 13% higher, rising 0.10p to 0.85p, after saying its recovery was well on track as a string of disposals and a switch to a new deli format helped arrest a slump in sales.

And car dealership Lookers cheered more than 2% or 6p to 288.5p as it posted record profits and said it was confident about prospects after completing the recent £31m (€46.2m) acquisition of motor parts business FPS.

The biggest Footsie risers were British Airways up 8.5p at 216.25p, Anglo American ahead 47p at 1244p, WPP Group up 18p at 489p and Xstrata ahead 29p at 799p.

The biggest fallers were Smith & Nephew down 7.5p at 471p, AB Foods off 8.5p at 609p, Man Group down 16p at 1323p and Rexam off 4.75p at 409.25p.