Insurance and mobiles boost FTSE

A fifth positive session in a row for the FTSE 100 Index remained a possibility today as the London market continued to show resilience.

By mid-morning, the Footsie stood 6.3 points higher at 4413.8 after insurers and mobile phone stocks offset weakness in oil majors BP and Shell.

The top flight has pushed above the 4400 mark in recent days after benefiting from an easing in oil prices and a solid round of corporate announcements.

Analysts believe steady progress in New York, where the Dow Jones Industrial Average is forecast to open unchanged this afternoon, could lead to a further modest rise for the FTSE 100 Index in London.

Among the risers, Prudential rose 3.25p to 433.5p, Friends Provident lifted 1.5p to 134.25p and Legal & General added half a penny to 96.5p after a positive note on the insurance sector from a broker.

There was also a bright showing for mobile phone companies after heavyweight stock Vodafone added 0.75p to 127p and rival mmO2 cheered 0.75p to 93.25p.

Consumer packaging group Rexam led the Footsie, however, after the blue-chip company said it was on course for a successful 2004. With half-year results pleasing the City, shares rose 7.5p to 432p.

The gains of Rexam and others were countered by a weakening in the strength of the oil sector with BP down 1.75p at 482.75p and Shell off 2.75p at 394p.

A number of stocks going ex-dividend – meaning shareholders lose their right to the annual or half-yearly payments – also put pressure on the top flight. Those affected included Scottish & Southern Energy, which fell 28.5p to 711.5p, and retail group Dixons, which slipped 3.5p to 158.5p.

Outside the top flight, newspaper publisher Johnston Press rose 3p to 516p after reporting stronger than expected advertising revenues for the first half.

Film studio company Pinewood Shepperton saw its shares lift 3p to 201.5p as it celebrated a 15.8% rise in half-year profits to a record £6.7m (€10m).