Oil prices hold Footsie back

Oil-dependent stocks were weighing on the London market today following a surge in the cost of crude over the weekend.

Cruise operator Carnival and British Airways were among the top flight fallers, contributing to a lacklustre start to the week by the FTSE 100 Index.

The Footsie stood 1.9 points higher at 5001.3 by mid-morning, although it refused to mirror sharp falls seen across the Atlantic on Friday.

The Dow Jones Industrial Average lost more than 90 points following worse-than-expected US unemployment data.

In London, Carnival was the third heaviest blue-chip faller, down 42p to 3004p, while British Airways retreated 1.25p to 268.75p. Although the cost of US light crude oil fell slightly today, it was still higher than 55 US dollars a barrel.

However, this lifted oil majors BP and Shell, which advanced 4.5p and 1.5p to 565.5p and 489.5p respectively.

Car maker Rolls Royce was the highest Footsie climber as stockbroker ABN Amro reiterated its “buy” rating and raised its price target on the stock to 350p. Rolls added 5p to 285.5p.

On a quiet day for corporate news, the main focus was on firms outside the top flight.

Typhoo group Premier Foods topped the FTSE 250 risers after snapping up the maker of meat alternative Quorn for £172 million. Shares advanced nearly 6%, 18.25p higher at 325p, after it announced the purchase of Marlow Foods.

News of a 23% profits hike at regional brewer Belhaven did little to change its share price. Its shares lost a penny to 484.5p.

And renewed speculation about the possible sale of the Pru’s 79% stake in Egg failed to warm the internet bank’s stock. Egg weakened 0.25p to 109p despite a report that US credit card firm MBNA was lining up a £900 million bid.