Fall in oil price holds back Footsie gains

A fall in oil prices and political uncertainty in Italy and Spain saw the Footsie drift during the day although it still managed to finish in positive territory.

David Madden, market analyst at CMC Markets UK, said the move lower in the oil market on account of speculation that OPEC will raise output slightly has hit London-listed stocks like BP, Royal Dutch Shell and Tullow Oil.

“The FTSE 100 has a relatively large exposure to the energy sector, which accelerated the drift lower.” The index ended the day up 13.54 points at 7730.28, although it had been more than 35 points higher earlier.

Shares in Pennon Group rallied after it announced a strong set of full-year results. Revenue rose by 2.9 per cent and profit jumped by 3.5 per cent, and the dividend was hiked by 7.3 per cent. Higher tariffs and falling costs contributed to the performance. The company reassured investors by confirming a positive outlook as waste services and energy recovery facilities are in strong demand. Shares rose 55p to 785p.

Sales at Ladbrokes owner GVC were dented by extreme weather in the first quarter, with horse racing cancellations hitting the firm’s performance. The group saw like-for-like retail gaming revenue drop 5 per cent in the 20 weeks to 20 May, with sports betting falling 9 per cent.

GVC said the performance in the UK was hit by “severe weather”, which saw 12 per cent of all horse racing fixtures cancelled due to the Beast from the East. Shares rose 42p to 1,025, ahead of next week’s FTSE 100 reshuffle when it is expected to join the index.