Oil prices continue to dominate FTSE performance

May 29 2008 by Our Correspondent, Liverpool Daily Post

THE London market managed to keep its head above water yesterday as oil prices coloured the session’s trading.

With oil hovering at around $129 barrel – compared to last week’s peak above $135 – the likes of British Airways and cruise ship firm Carnival were among the FTSE 100 Index’s winners.

But the dip saw oil majors like BP and Cairn Energy lose ground, although the Footsie clung on to an 11.1 point gain to 6069.6, thanks partly to a rush for insurers.

BA was among the notable gainers, firming almost 2%, or 3.5p at 218.25p, as investors cheered prospects of potential relief from mounting fuel bills for the airline.

FTSE 250 counterpart Easyjet also benefited, nearly topping the second tier risers’ board with a 6% hike, up 17.25p at 291.75p. Carnival was among the best performers, 52p better off at 1894p.

But oil giant BP was down 11p at 605.5p, Tullow Oil fell 12.5p, to 897.5p, and Cairn Energy slipped 56p to 3315p.

Insurers were among the chief beneficiaries as traders moved their money out of the oil and gas sector. Admiral was the leading Footsie riser, up more than 4%, or 35p to 884.5p, with further strong showings from RSA Insurance and Aviva, which gained 2.9p to 134.8p and 12.5p to 620p respectively.

Blue-chip supermarkets also fared well after an upgrade for Morrisons from Credit Suisse. Morrisons rose 5.75p to 291p and Sainsbury’s added 10.5p to 352p.

The four biggest fallers were Marks & Spencer down 14.75p to 381p, Cadbury down 24p at 680.5p, Cable & Wireless down 4.5p at 158.7p, and Tate & Lyle, down 10.5p at 457.25p.