FTSE up in morning trading

A five-month low for oil prices helped airlines to climb on the London market today.

FTSE 100 Index carrier British Airways and second tier rival easyJet were both up more than 5% as crude dropped below 105 US dollars a barrel for the first time since April.

With banks also consolidating gains seen in the wake of the US Government support for the mortgage industry, the FTSE 100 Index added 58.3 points to 5504.6 by mid-morning.

Traders were eager to make up for lost time after a computer glitch at the London Stock Exchange wiped out most of yesterday’s business.

British Airways was 13p higher at 266p, with easyJet topping the FTSE 250 risers board 20.75p ahead at 369.5p. Top tier cruise ship firm Carnival also powered ahead 90p to 2108p.

BA was just pipped to the top riser position by credit checking firm Experian, which was nearly 6% higher, or 25.75p to 457p, thanks to the better financial sector sentiment.

That saw the Royal Bank of Scotland move up 12.75p at 257.25p, while Barclays and HBOS were not far off, up 13p to 368p and 11.25p to 318.25p respectively.

ITV was another good performer, rising more than 5%, or 2.3p to 46.3p. The broadcaster has been buoyed by speculation of investment from Italy, and today strengthened its management with the appointment of former Emap executive Ian Griffiths as finance director.

On the downside, miners continued their recent retreat amid weakening commodity prices. As a result, Eurasian Natural Resources fell 43.5p to 791p and Xstrata slipped 90p to 2474p.

The biggest faller in the FTSE 250 Index was defence research firm Qinetiq after the Government sold its 19% stake into the market. The MoD’s stake was worth £279 million based on last night’s closing share price, but the Government will retain its “special share” in the business allowing it to veto any deal contrary to UK defence and security interests. Qinetiq fell 17.25p to 206.5p, a drop of 8%.