ITV licence news makes stock hottest on FTSE

Investors applauding cuts in the amount broadcasters pay for TV licences helped ITV to become the hottest stock in London today.

ITV shares bounced 5% or 5.75p to 121.75p after UK communications regulator Ofcom said the broadcaster should expect to pay less than £80m (€119.9m) this year – compared to £215m (€322m) in 2004.

Falling oil prices and a rebound on Wall Street overnight were also triggering fresh enthusiasm among investors as the FTSE 100 Index rose 5.2 points higher to 5095.6 by mid-morning.

Removal of the uncertainty over licence fees was reflected elsewhere on the market with Scottish TV and Grampian TV owner SMG rising 2.25p to 97.25p because its fees are expected to fall from £5m (€7.5m) to as low as £1m (€1.5m) this year.

A fall of $2 in the cost of crude overnight was reflected on the market today, with interest ignited in stocks such as British Airways but depressed in oil giants BP and Shell.

BA cheered 3.25p to 268.25, shaking off recent weakness in its share price caused by negative reaction to its decision to raise the fuel surcharge on flights booked in the UK.

But events on the petroleum exchanges did little to enthuse investors in oil giants BP and Shell, which fell 5.5p and 6.75p to 589.5p and 538.25p respectively.

Airports operator BAA rose 19.5p to 618p as investors spotted a buying opportunity in a bad run for its shares recently.

Elsewhere, shares in property consultancy Savills held steady at 678.5p as positive news of a strong investment property market was offset by lower residential volumes than last year.

Spirent improved more than 4% or 2p to 48p after the telecoms equipment group said it was cutting 180 jobs as part of an overhaul of its telephone network monitoring arm.