London Flat On Oil

Ivaylo
15 Sep, 2006
New York City

The benchmark index witnesses a mixed picture on Friday as oil and other commodities were struggling, hitting the resources sector which has been so much behind the advance of FTSE lately. However it is having a positive effect on other sectors in that it leaves consumers with more disposable income. By mid-day, the FTSE 100 was down 2.7 points, or 0.05%, at 5,876.1.

[R]9:30AM The FTSE 100 trades flat at mid-day as oils offset gains.[/R]
The FTSE 100 in London traded nearly flat, down 2.7 points, or 0.05%, at 5,876.1. at mid-day on Friday. Oil stocks were weak as crude stayed near $63 a barrel, near its lowest levels since March, as ample U.S. fuel stocks looked set to meet winter heating demand in the world biggest consumer. BP fell 0.8%, Royal Dutch Shell was steady and Cairn Energy slipped 0.2%.

Banks led the advancers. Standard Chartered gained 1.55 after UBS raised its rating to buy from neutral and its target price. HBOS rose 2%, benefiting from positive broker comment and Alliance & Leicester was up 1.6% while Northern Rock rose 1.5%. Other stocks which gained included Morrison Supermarket advancing 2.2% and Hammerson rising 1.1%, both on positive broker comment.

Imperial Tobacco Group reported its current year trading matched its own expectations and added it had performed strongly in the UK driven by improved cigarette market share. Imperial shares added 0.7%. Shares in cruise ship operator Carnival continued to advance on upbeat expectations for its fiscal third quarter results, due next week. Carnival shares rose 0.7%.

Shares in aircraft maker Rolls Royce Group moved up 0.5% following its announcement that it won a contract with China''s Hainan Airlines Group that could be worth over $500 million. Interest in the online gambling sector was renewed after a New York court allowed Sportingbet''s former non-executive chairman, Peter Dicks, to return to the U.K. on bail. Sportingbet shares fell 4%.

Miners fell across the board with Kazakhmys, Xstrata, Antafogasta, and Vedanta Resources decreasing between 2.4 and 1.4% each. Copper and aluminium were struggling to hold key support levels as investors worried about global economic growth.