BP and Shell boost FTSE in morning trading

Stellar results from oil giants BP and Shell boosted the energy sector and helped put the London market on the front foot today.

Oil and gas companies surged nearly 5% overall after the pair smashed City expectations for first quarter results, helping the FTSE rise 30.2 points to 6120.6 by mid-morning.

Shell, which posted a 12% rise in profits to 7.7 billion US dollars (£3.92bn), set the pace with a gain of 114p to 2037p. Rival BP was close behind, adding 33p to 611.5p after it unveiled a 48% hike in profits for the period.

Gas exploration firm BG Group was also high up the leaders’ board, gaining 44p to 1342p, and Cairn Energy cheered 37p to 3036p.

Shares in Britain’s biggest mortgage lender Halifax Bank of Scotland suffered a reversal as investors initially took news of a £4 billion rights issue in their stride. But broker Collins Stewart told clients to sell the stock, and the shares dropped 1%, or 5.25p, to 490.5p.

Other banks, however, were cheered as the City noted a strong trading update from Spanish-owned Abbey, with HSBC adding 3.5p to 868.5p and Lloyds TSB lifting 1.5p to 448.75p

The other big move in the top flight came from Friends Provident after the insurer said first quarter sales lifted 11% and it said it had faith in its new strategy. The fading of takeover interest has put shares under pressure recently, but the stock rose 1.9p to 119.1p today.

Falling metals prices saw shares in the big mining companies lose ground. Kazakhmys lost 49p to 1676p, with Anglo American 86p off at 3255p.

In the FTSE 250 Index, pub chain JD Wetherspoon’s shares rose 5% – or 14.25p to 283.25p – after reporting an improved trend for sales.