Oil stocks keep Footsie in positive territory

Oil stocks were buoying the London market today as the FTSE 100 Index attempted to mark an end to the heavy losses of recent weeks.

The Footsie was heading for its third consecutive session of gains and moved closer back to the key 5,000 barrier – standing 16.1 points higher at 4963.5 by mid-morning.

Data showing the United States had increased fuel stocks for the eight consecutive week triggered a retreat by US light crude to below 56 US dollars earlier in the session, although it then lifted back to 56.28 US dollars.

Oil giant Shell was the session’s highest climber as traders welcomed the upturn, adding nearly 2% or 8.5p to 492.5p, while rival BP also cheered 5p to 565p.

The market also held its nerve ahead of the Bank of England’s announcement on interest rates, with another no-change decision widely expected.

Artificial hips and knees manufacturer Smith & Nephew shook off some of its recent weakness caused by an inquiry in the United States to rise 8.5p to 527p. One analyst said investors were starting to put the matter into perspective.

Drugs giant GlaxoSmithKline was also faring well – up 6p to 1238p – while AstraZeneca lifted 9p to 2173p.

However, news that health and beauty chain Boots was putting its business making Nurofen and Strepsils up for sale failed to inject momentum into the group’s shares.

Although Boots advanced 2% earlier on, it later fell back 2p to 617.5p as investors focused on downbeat comments that operating profits were likely to be lower in the current financial year.

Outside the top flight, car accessories and cycles retailer Halfords rose 4.5p to 301p after saying that its full-year figures should mirror its own expectations despite a slowdown in sales over the past six months.

And racecourse owner Arena Leisure leapt more than 5% or 2.25p to 42.75p on news of a maiden dividend payment, record operating profits and strong current trading.