FTSE makes slight gains

London shares hovered around their opening mark today as investors became more wary after yesterday’s fifth successive session of gains.

After closing at new three-year highs last night, the FTSE 100 Index was 0.1 points up at 5184.4 in the first hour of business.

Oil and gas stocks were largely behind yesterday’s progress, with heavyweights BP and Shell both finishing the day in the black.

Shares in BP continued to buoy the market today after it said in an update that its second quarter production was up from the same period last year and that it was on track to meet its 2005 production target.

BP rose 0.5p to 617.5p and gas explorer BG Group moved 2p ahead to 478.5p, but Shell lost 0.25p to 563p.

The price of US light crude edged 63c up to $59.38 a barrel in morning futures trading. After yesterday’s Independence Day public holiday in the US, the Dow Jones Industrial Average was expected to open marginally up today.

The markets took little heart from figures from the British Retail Consortium showing that high street sales in June fell less than the previous month, helped by good weather and clearance sales.

Back on the corporate front, bookmaker William Hill retained its place at the top of the Footsie risers, advancing 9.5p to 549.5p, after brokers described the firm’s trading update as better than expected.

However, insurer Aviva was near the top of the top flight fallers with a 5.5p loss to 619p after it said its adoption of new accounting standards would effectively reduce its pre-tax operating profits by 5%.

Elsewhere, housebuilder George Wimpey saw its stock dip 11p to 445p after it warned that interim profits would be well down on 2004.

But tapas restaurant group La Tasca gained nearly 2% or 2.5p to 135.5p after it reported a 56% rise in annual profits to £2.4m (€3.5m).