Market ends higher despite late sell-off

Market report Perry Gourley

The FTSE 100 lost momentum towards the end of the session but stayed in the black, helped by shares in BAE Systems powering ahead after the firm escaped a potential earnings blow when the High Court ruled the UK could continue selling arms to Saudi Arabia.

Two judges in London decided the Secretary of State for International Trade had not acted unlawfully or irrationally in refusing to block export licences for the multi-billion sale and transfer of arms and military equipment.

The British defence giant, which generates more than £3 billion of its revenues from business with the Arab nation, rose 12.5p to 630p. The wider FTSE 100 index closed up 19.11 points to 7,370.03.

The oil price endured another choppy session, falling in early trading before swinging to a 1 per cent rise at $47.19 a barrel. David Madden, at CMC Markets UK, said traders have “less faith” in Opec’s ability to curb oil production and support prices despite pledging to tackle the global supply glut.

In UK stocks, Carillion’s stock price crashed after it warned over its performance and said that the board is to carry out a “comprehensive review” of the business, with the firm’s chief executive to step down. Shares in the firm fell 39 per cent, or 75p to 117.1p.

The biggest risers were Schroders up 68p to 3,225p, BAE Systems up 12.5p to 630p, BHP Billiton up 21p to 1,263.5p, Anglo American up 17p to 1,068p.

The biggest fallers were Shire down 138p to 4,186.5p, Next down 73p to 3,693p and Provident Financial down 42p to 2,330p. The gene and cell therapy group continued to be in demand from investors after last week’s deal to supply Swiss pharma giant Novartis. The construction firm saw its shares plunge on news its CEO was stepping down and the board is to carry out a comprehensive review.