More progress for FTSE

London shares notched up their sixth consecutive day of progress today despite spending most of the session in the red.

The FTSE 100 Index staged a late revival to close 4.8 points ahead at 5332.3.

Oil and gas shares lent support to the market despite encouraging US oil stockpile data that sent crude prices back below $62 a barrel in late afternoon trading.

BP was up 9p at 643p while Royal Dutch Shell B shares lifted 11p to 1864p and BG gained 9.75p to 490.25p.

Mining stocks were the day’s star performers after Rio Tinto turned in what market watchers described as an outstanding set of results.

The Dow Jones Industrial Average was 14 points down shortly after London’s close in the wake of a private report showing weaker-than-expected growth in the US service economy.

There was better news about the UK service sector, however, with a survey from the Chartered Institute of Purchasing & Supply showing activity in the industry accelerating to its sharpest rate in three months.

On the corporate front, miner Rio Tinto ended the day at the top of the Footsie risers after the company reported better-than-expected first half earnings.

The stock gained 3% or 71p to 1986p after broker UBS upgraded it to buy from neutral and increased its price target to 2250p from 1910p.

The news boosted Rio’s rivals, with Antofagasta adding 47p to 1393p, BHP Billiton lifting 27p to 837p, Xstrata advancing 32p to 1245p and Anglo American progressing 27p to 1463p.

Meanwhile, broadcaster BSkyB lost 7p to 544p despite reporting full-year results at the top of market expectations.

Analysts said a presentation by the company had failed to convince them that there was anything to drive the stock forward in the short term.

Brickmaker Hanson recovered losses to end the day in the black after posting a 28% rise in first-half profits to £172.3m (€248m), but warning of continuing weak demand in the UK housebuilding market. Shares were 5p up at 585p.

BPB – the world’s biggest plasterboard maker – was second in the Footsie risers, strengthening 26p to 734p, after French glassmaker Saint-Gobain tabled a hostile offer for the group.

However, stocks negatively affected by going ex-dividend included BT Group, which fell 7.75p to 221.75p, and pharmaceuticals giant GlaxoSmithKline, off 6p at 1335p.

Halifax owner HBOS supported the market after posting figures showing a 15% rise in half-year profits to £2.26bn (€3.3bn).

Its shares improved 5p to 879p, but the rest of the sector struggled, with Royal Bank of Scotland down 9p at 1703p and Barclays off 2.5p at 562p. Both companies are due to report figures in the next two days.

Biggest risers were Rio Tinto gaining 71p to 1986p, BPB advancing 26p to 734p, Antofagasta lifting 47p to 1393p and BHP Billiton adding 27p to 837p.

Biggest fallers were Reuters down 16.25p to 372.75p, BT Group off 7.75p to 221.75p, Kelda losing 15p to 688p and Reed Elsevier weakening 10p to 523.5p.