Shell leads FTSE charge

Royal Dutch Shell led the London market higher today amid reports of a major exploration campaign in the Arctic.

The stock gained more than 2%, or 50p, to 2106p after it emerged that firm was set to embark on the new venture in a bid to exploit untapped oil and gas reserves in the Beaufort Sea.

The heavily-weighted stock helped the FTSE 100 Index move 39.8 points ahead to 6675 by mid-morning.

Other energy stocks lifted by Shell’s plans were BG Group, up 14.5p to 827.5p, and BP, ahead 6.5p at 610.5p.

But the index was also buoyed a strong showing from the mining sector after it was lifted by high commodity prices and takeover activity.

BHP Billiton made firm gains, up 31p to 1493p, followed by Antofagasta, ahead 9p at 655.5p, and Xstrata, which gained 23p to 3193p.

Broker upgrades also helped broadcaster BSkyB move 9p higher at 658p while banking group Standard Chartered gained 19p to 1638p

But among the fallers, Argos owner Home Retail Group dropped 1.75p to 458.5p on the back of less positive noises from Citigroup amid prospects for higher interest rates following yesterday’s hike.

Other retail stocks on the back foot included Kingfisher, off 3.75p to 222p, Marks & Spencer down 7p at 619p, while Next was off 8p at 1999p.

Meanwhile, Dulux paint maker ICI was down 1p to 619p after reportedly urging the Takeover Panel to issue its Dutch suitor Akzo Nobel with a “put up or shut up” deadline to make a firm bid for the company.

In the second tier, kitchens group Aga Foodservice topped the risers after it said it was considering a move to spin off its catering equipment business. The shares jumped nearly 7%, or 25.5p, to 411p.

WH Smith meanwhile lost 4%, or 16.5p, to 391p on more downbeat comments on the retail sector from analysts.