Blue-chip stocks boost FTSE

Blue-chip stocks gained ground in London today as market nerves were eased by falling crude oil prices.

With oil trading at around US$127 a barrel - compared to last week's peak above $135 - the likes of British Airways and cruise ship firm Carnival were among the top flight's leading performers.

Although the commodity's lower price meant a poor session for heavyweights such as BP and Royal Dutch Shell, the wider market had gained 35.5 to 6094 by the mid-session amid expectations of a positive opening on Wall Street.

BA was among the biggest gainers, ahead almost 4% or 9p at 223.75p, as investors cheered prospects of potential relief from mounting fuel bills for the airline.

FTSE 250 counterpart easyJet also benefited, topping the second tier risers' board with a 7% hike, up 20p at 294.5p, while in the top flight Carnival was 45p better off at 1887p.

BP was down 7.5p at 609p and Royal Dutch Shell off 6p at 2106p respectively. In a poor session for the prospectors, Tullow Oil fell 25.5p to 884.5p, Cairn Energy slipped 63p to 3308p and BG Group shed 14p to 1276p, or 1%.

Insurers were one of the chief beneficiaries as traders moved their money out of the oil and gas sector today. Admiral was the leading Footsie riser, up more than 5%, or 43.5p to 983p, with further strong showings from Prudential and Aviva, which gained 23p to 667p and 18p to 625.5p respectively.

Blue-chip supermarkets also fared well after an upgrade for Morrisons from Credit Suisse. Morrisons rose 7.25p to 292.5p and Sainsbury's added 11.5p to 353p.

Housebuilders and property companies - which suffered during a selling blitz yesterday - were in better shape. Charles Church owner Persimmon was up 10p at 519p, while property developer Hammerson clawed back some losses to stand 33p ahead at 934p.

On the fallers board, Marks & Spencer and Next saw steep declines after both stocks became ex-dividend - meaning new investors no longer have the right to receive upcoming dividends. M&S was down 12.25p to 383.5p, while Next lost 13p to 1172p.

Up-for-sale nuclear power generator British Energy was another firm in the red after reporting a sharp fall in annual earnings. Shares were down 16p to 721p.

Elsewhere telecoms group Thus soared 22p or 20% to 132p after giant Cable & Wireless revealed it had made a preliminary takeover approach for the company.