Oil prices abate, pushing FTSE up

Relief at lower oil prices helped the FTSE 100 Index rack up its fifth consecutive session of gains today.

Progress by oil-dependent stocks such as British Airways and cruise operator Carnival contributed to the Footsie finishing within striking distance of the key 5000 mark – 18 points higher at 4989.8.

Comments by Opec that it would not lower output saw the cost of a barrel of US light crude weaken 40c to $48.25 in New York, helping BA add 4.5p to 277p and Carnival rise 44p to 3037p.

The market also received a boost from across the Atlantic, where the Dow Jones Industrial Average was nearly 30 points higher by the end of trading in London.

However, one expert said traders were aware that profit-taking could take place at any time, preventing the Footsie rising above 5000.

Geoff Langham, head of trading at deal4free.com, said: “Unless we get some significant upside, that 5000 level could still prove to be a significant barrier.”

Leisure group Hilton was the biggest blue-chip climber today – up more than 3% or 9.75p to 284.75p – despite its denial that it is planning to sell its LivingWell health club chain.

Major corporate news took the form of an £811m (€1.2bn) offer by British Land for a smaller rival in the UK construction and development sector.

British Land ticked up 5.5p to 856p after announcing the move for Pillar Property, which ended the session 1.5p lower at 843.5p despite an early boost from the news.

Retailer Marks & Spencer was unchanged ahead of tomorrow’s full year results, which analysts expect to show a fall in profits to £621m (€903.5m) against £751m (€1.1bn) the year before.

Outside the top flight, support services group Jarvis saw its shares slump by a third after it unveiled a financial shake-up that could leave investors owning less than 5% of the company. The stock plunged 36% or 4p to 7p.

Convenience foods group Uniq lost 6.5p to 148.5p after bottom-line losses widened to £70.6m (€102.7m) in the year to March 31 from £15.6m (€22.7m).

Telecoms group Thus was out of favour with investors after it warned that aggressive pricing in the industry was likely to continue throughout the year. Thus shares eased 0.25p to 14.25p.

Oil explorer White Nile was a heavy faller after trading in its shares took place for the first time since its dramatic debut on the stock market in February. Its shares fell 9% or 12p to 126.5p as investors banked profits and took a more cautious stance to its oil deal with the government of South Sudan.

The biggest Footsie risers today were Hilton up 9.75p to 284.75p, Hanson rising 9p to 506p, O2 up 2.25p to 126.75p and Corus adding 0.75p to 43.25p.

The heaviest fallers were Morrisons down 2.5p to 191.75p, Daily Mail & General Trust off 7.5p to 659.5p, International Power falling 2p to 184.25p and Aviva down 6p to 615.5p.