Footsie edges towards 5000 barrier
The FTSE 100 Index ended the week within touching distance of the 5000 barrier today as investors breathed a sigh of relief at lower oil prices.
A further weakening in the cost of US light crude to just over 53 US dollars a barrel relieved pressure on oil-dependent stocks and helped the Footsie rise 6.6 points to 4983.6.
It marked the top flight’s fourth consecutive session of gains and meant the index closed at its highest level in nearly a month.
The Footsie resisted the urge to follow the lead of New York’s Dow Jones Industrial Average, which stood around 30 points lower by the end of trading in London.
Retailers were among the top performing stocks in London as investors awaited key announcements from a number of high-profile companies next week.
Tesco, which is due to post profits of £2 billion on Tuesday, gained 0.75p to 317p while Argos-owner GUS lifted 12.5p to 913.5p ahead of a trading statement due on Thursday.
But the biggest gain in the sector came from Boots after the health and beauty chain was the subject of takeover speculation, possibly linking any one of four private equity firms to interest in a £4.6 billion approach.
The stock, which edged lower yesterday in the wake of a second profits warning in as many months, hit the top of the Footsie risers board – up more than 3% or 19p at 634.5p. The prospect of a return of cash to shareholders, following the planned disposal of its over-the-counter medicines business, was also underpinning the share price.
Among beneficiaries of the lower oil price, British Airways rose 3.5p to 273.75p and cruise ship operator Carnival lifted 37p to 2918p.
But oil giants BP and Shell lost some of yesterday’s significant gains, retreating 5.5p and 4.5p to 564.5p and 491.5p respectively.
Insurers were also proving to be a drag on the market with Friends Provident down 1.5p at 172.25p and Royal & Sun Alliance off 1.5p at 81.25p.
Elsewhere, tea and coffee retailer Whittard of Chelsea slumped nearly 20%, off 26p to 105p, after it said sales had come sharply off the boil as shoppers proved reluctant to spend over Easter.
And in-car navigation specialist Trafficmaster emerged as a casualty from the collapse of MG Rover after it said it was owed £500,000 by the firm and that the situation meant sales of its Smartnav product would be below expectations. Shares fell almost 3% or 1.5p to 51p.
Water group East Surrey Holdings lifted 13.75p to 536.75p after multi-millionaire financier Guy Hands’ investment company announced plans for a £435 million acquisition. The stock had already risen sharply yesterday after the firm said it was in takeover talks.
The highest Footsie risers today were Boots up 19p to 634.5p, Xstrata rising 22p to 1049p, Scottish & Southern Energy up 17p to 929.5p and Cable & Wireless adding 2.25p to 132p.
The heaviest fallers were Amvescap down 7.75p to 335p, Royal & Sun Alliance off 1.5p to 81.25p, Corus down 0.75p to 54.75p and Gallaher off 10.5p to 779p.
