FTSE hits five-year high

The London market basked at a level not seen for five years today as investors brushed aside worries about the latest rise in oil prices.

The new FTSE record, which came in the face of expectations for a lacklustre session, highlighted the conditions that persuaded the private equity owners of Debenhams to return the retailer to the stock market.

The FTSE 100 Index stood at 6102.2 by mid-morning, a gain of 12.7 points although the top flight had been as high as 6113.4 earlier in the session.

At the same time oil prices were above 72 US dollars a barrel, which was enough for BP to rise 7p to 71p and for Royal Dutch Shell to gain 7p to 2011p.

Among other movers, ICI rose 3% – 11.5p to 374.25p – after results elsewhere in the chemicals sector raised expectations from ICI, which is also seen as being in line to receive a takeover approach.

Media companies added a significant slice of the top flight’s improvement, after Daily Mail & General Trust continued the recent acquisition spree in the sector with a deal worth £73m (€105.4m) for a US-based real-time provider of energy generation and transmission information.

Daily Mail & General Trust rose 11p to 667.5p, while Yell Group added 16.5p to 540.5p, Reuters lifted 6.5p to 391.5p and ITV added 1.75p to 115.25p.

Vague bid talk involving Capital Radio owner Gcap Media – up 14.75p to 238.5p - added to the positive sentiment in the sector, while the mood was also helped by the performance of another second tier company, music company EMI.

The recording and publishing group jumped 5% or 14p to 270p after forecasting a 12% rise in annual profits today.

JJB Sports moved in the opposite direction, down 4p to 177.5p, after a price war on the high street caused profits to fall sharply. Woolworths was dragged with it, easing a penny to 34p.