BP profits disappointment help FTSE into negative territory

Shares in BP fell 3% today as its latest record profits haul disappointed investors and plunged the FTSE 100 Index into the red.

The oil giant was among the day’s heaviest fallers after its profits came in below expectations following accounting charges and the continued impact of vicious hurricane season on production.

Market watchers had been looking for a much stronger session after the Dow Jones Industrial Average held on to positive territory in New York last night, but the Footsie slumped 24.8 points to 5747.6 by mid-morning.

Shares in BP fell 17.5p to 648p as investors reacted to full-year profits of $19.3bn (€16bn) – well below City targets and the record haul for a UK company banked by rival Royal Dutch Shell.

BP also suffered from some profit taking after a strong run recently, while Shell lost 9p to 1930p and BG Group shed 5.5p to 631.5p.

A string of retailers followed BP into negative territory after figures showed that the high street was suffering from post-Christmas blues.

The British Retail Consortium said like-for-like sales increased by just 0.2% in January – the weakest start to a year for more than a decade.

The downturn sent shares in Dixons owner DSG International down 4.5p to 171.25p, Kingfisher off 5.75p to 221.25p and Next 36p lower at 1672p. Marks & Spencer was also caught in the sell-off as it fell back below £5, down 7p to 494.5p.

Elsewhere, Aviva shares surged more than 1% as investors welcomed fourth quarter sales figures and comments from the Norwich Union owner that it had good momentum in the UK market.

Shares were up 9.5p at 737p and pushed rivals into positive territory, including Old Mutual which topped the leaders board with a gain of 3.5p to 195p.

Cable & Wireless also cheered 0.75p to 102p as the ailing telecoms company continued its tentative recovery following a profits warning last week.