Oil prices dip good news for FTSE

A fall in the cost of oil to its lowest level in three months left the FTSE 100 Index on course for a positive end to the week today.

Traders welcomed the news that the cost of crude had dipped below $44 for the first time since September by pushing the Footsie up 12.6 points to 4763.8 by mid-morning.

Exporters were given a further boost as the pound retreated from its recent 12-year high against the greenback, with strong results from US bellwether Intel suggesting the American economy may be in better health than previously thought.

Drugs giants were doing their best to ensure the Footsie remained in the black for its third consecutive session, with GlaxoSmithKline 15p stronger at 1141p and AstraZeneca cheering 8p to 2122p.

But oil companies were in the doldrums following the fall in the price of oil, with BP off 2.5p to 513p and rival Shell slipping 2p to 435.75p.

Other resource-related stocks took a hit, with miners top of the Footsie fallers board. Rio Tinto was the biggest loser, off 33p to 1488p, followed by Antofagasta down 24p to 1106p and BHP Billiton weakening 10.5p to 588p.

Elsewhere, Enterprise Inns advanced 18.5p to 682p in the wake of the latest round of consolidation in the pubs sector.

Investors bought into the UK’s largest pubs group after rival Wolverhampton & Dudley Breweries unveiled a £115 million offer for Burtonwood.

Analysts said the deal made sense for FTSE 250 stock Wolves and investors agreed as its shares cheered 48p to 995p. Burtonwood advanced 7% or 38p to 550.5p on the news.

Also in the lower tiers, SPG Media gained 0.25p to 13.75p after selling historic publisher Debrett’s to privately-owned Devonshire Media for £1m (€1.4m).