Oil stocks help FTSE to positive end of week

Progress by heavyweight oil stocks helped put the FTSE 100 Index on course for a positive end to the week today.

BP and Royal Dutch Shell both received a boost from a slight rise in the cost of crude, adding 5.5p and 7p to 633.5p and 1825p respectively.

This contributed to the Footsie lifting 8.6 points to 5349.4 by mid-morning, making yesterday’s bout of profit-taking appear little more than a hiccup in the market’s recent rally.

Also in demand was medical devices firm Smith & Nephew after regulators in the United States recommended the approval of one of its artificial hip implants for sale there. Shares in Smith & Nephew stood fourth on the risers board, up 7p at 546p.

Centrica was in the black amid renewed speculation it could be the next UK utility to field a takeover approach.

Russian energy giant Gazprom was being touted as a potential bidder for Centrica following the recent expression of interest in rival Scottish Power by German industrial group E.On. This initially propelled the stock to the top of the Footsie risers, although it later weakened to stand 0.25p higher at 265p.

Its shares were traded more heavily than any other stock with the exception of mobile phone giant Vodafone, which was 0.25p lower at 149.5p.

But airports operator BAA was downbeat, off 4p at 619p, after saying that it handled only 0.5% more passengers than a year ago at its UK airports in August because of strike action and worries about travel safety in the wake of the London bombs.

Elsewhere, supermarket chain Somerfield fell 3.5p to 202.5p on fears that it could terminate takeover talks because it has failed to receive a formal offer eight months after first getting an approach.

Kitchen equipment maker Aga was on better form, rising 2.5p to 314.5p, after revealing it was reducing its reliance on the cautious UK consumer by bumping up sales of its iconic cooker abroad.