FTSE back above 5500

Investors overcame the collapse of a potential multi-billion pound takeover today as the FTSE 100 Index pushed back above the 5500 barrier.

Stronger energy stocks, following a jump in the price of crude oil, contributed to the latest increase, which left the Footsie 15.2 points stronger at 5513.1 by mid-morning.

Most of the market’s attention was on Scottish Power after Powergen owner E.On failed to secure the support of the utility for a takeover worth £11.3bn (€16.5m).

Shares in Scottish Power dropped more than 7% or 42.5p to 526.5p in the wake of the statement from E.On, while a host of other utilities also suffered.

Scottish & Southern Energy, which has been seen as a potential merger partner for Scottish Power, fell 16p to 1002p and United Utilities weakened 3.5p to 644p. Centrica lost 2.5p to 238p and International Power fell 4.25p to 237p.

Elsewhere, investors lapped up positive news in the aviation sector after second-tier stock easyJet beat expectations for full-year profits and cheered the sight of the Dow Jones Industrial Average closing at levels not seen since February.

Among the risers, Enterprise Inns rose 17p to 881p after lifting its dividend by 50% and claiming to have grown market share and profitability at a time when the sector experienced “highly competitive” conditions.

British Airways advanced 5p to 312.5p as investors padded out their portfolio with stocks in the aviation sector following the upbeat news from easyJet.

Shares in easyJet took off 8% or 25.25p to 331.75p after revealing profits rose to £68m (€100m) – ahead of earlier guidance of £62m (€90m).

The improvement in energy stocks came after the price of a barrel of oil rose to just below the $59 a barrel mark.

Royal Dutch Shell lifted 13p to 1937p while BP added 8.5p to 662p, a gain of more than 1%.