Rolls-royce helps power Footsie jump

Market report Emma Newlands

London’s blue-chip index ended the day higher thanks to strong earnings from the likes of engineering firm Rolls-royce and oil giant BP.

The FTSE 100 rose 0.7 per cent or 51.66 points to 7,423.66, after Rolls-royce Holdings shares surged 91p to 979p, and shares in crude producer BP rose 10.65p to 456.45p.

Investors were celebrating a jump in large engine deliveries, which helped Rolls-royce swing to a half-year pre-tax profit of £1.94 billion, having suffered a £2.15bn loss over the same period last year.

Sterling’s performance was mixed, with the pound flat against the US dollar at $1.320, and up 0.3 per cent versus the euro at €1.119.

In UK stocks, Centrica shares jumped 4.5p to 203p on news British Gas will hike electricity prices by 12.5 per cent for 3.1 million customers in September, saying it was currently selling electricity at a loss.

British American Tobacco climbed 118.5p to 4,832p despite the revelation that it is now facing an investigation from the Serious Fraud Office linked to allegations that it paid bribes in East Africa.

Shares in steak bake maker Greggs were up 29p to 1,129p after it revealed that like-for-like sales rose 3.4 per cent in the first half, due in part to a strong customer appetite for salads.

The biggest risers on the FTSE 100 included Direct Line Insurance, up 20.4p to 395p, and International Consolidated Airlines Group, up 19.5p to 597.5p. The biggest fallers included Fresnillo, down 40p to 1,496p, Mediclinic International, down 15p to 725p, and Astrazeneca, down 79p to 4,490p. One analyst said the engine-maker “rocketed higher on the back of profits more than doubling, and coming in higher than dealers anticipated”. The language translation specialist fell after flagging higher first-half costs, and second-half margins expected to be “slightly below” last year.