En­ergy stocks help to push the mar­ket to record close

Yorkshire Post - Business - - MARKET REPORT -

BLUE chip en­ergy gi­ants helped push the Lon­don mar­ket to a record close on Mon­day after the price of oil hit a two-year peak

The FTSE 100 In­dex mus­tered a measly 1.93 point rise, but still rewrote the record books by clos­ing at an all-time high of 7,562.28.

It en­sured the pre­mier in­dex trumped pre­vi­ous records of 7,560.35 set on Fri­day and 7,556.24 recorded on Oc­to­ber 12.

Oil ma­jors were among the blue chip stocks giv­ing the mar­ket a leg-up, as they tracked the price of Brent crude, which rose 2.4 per cent to 63.58 a bar­rel.

Shares in P and Royal Dutch Shell B were up 4.3p to 521.1p and 181,2p to 2,490p re­spec-tively, as traders re­acted to Saudi Ara­bia's drive to stamp out cor-rup­tion.

The move will hand more power to Crown Prince Mo­ham-med bin Sal­man, who wants 01)11C to sup­port prices by freez-ing pro­duc­tion be­yond the March 2018 dead­line.

Con­nor Camp­bell, fi­nan­cial an­a­lyst at Spreadex, said: "Argu-ably, the UK in­dex should have done bet­ter given the show­ing from its com­mod­ity stocks."

Across Europe, Ger­many's Dax was marginally down and the Cac 40 in France eased back by 0.2 per cent.

In the US, the Dow Jones and SW 500 hit record highs, while the NAS­DAQ 100 also lifted to a record peak after shares in Qual-comm surged fol­low­ing a 130bn (£99.1bn) takeover hid from ri­val Broad­com.

On the cur­rency mar­kets, the pound was 0.6 per cent higher ver­sus the US dol­lar and the euro at 1.315 and 1.133 re­spec-tively.

David Mad­den, an­a­lyst at able Mar­kets UK. said: "GBP/USD has man­aged to pull back some of the losses it in­curred on the back of Thurs­day's sell-off when the Bank of Eng­land Morn did a dovish in­ter­est rate hike.

'There has been lit­tle to go on to­day for ster­ling traders as there were not ma­jor eco­nomic an­nounce­ments from the UK

The pound is still in its up­ward trend that it hs been in since March and if it can re­main about the 1.30 re­gion, it is likely to con­tinue push­ing higher."

Fo­cus­ing on UK stocks, chal-lenger bank Al­der­more rose more than 3 per cent after its board agreed a £1.1bn takeover by South Africa's First­hand.

The of­fer from the fi­nan­cial ser­vices firm, whose business In­ter­ests range from in­vest­ment and re­tail bank­ing to as­set man-age­ment, will see it fork out 313p per share.

It rep­re­sents a 22 per cent pre­mium to Al­der­more's clos­ing share price on Oc­to­ber 12 and val­ues the firm at £1.1bn.

First­hand said it aims to diver-sify Al­der­more's propo­si­tion in the UK, with the pos­si­ble addi-tion of ser­vices such as car fi­nanc­ing, per­sonal loans and in­sur­ance.

The of­fer is sub­ject to a share-holder vote but the board has rec­om­mended in­vestors back the deal.

Shares in the lender closed up S'ap to 311.p.

The Supreme Court has re­jected Sam­sung's ap­peal against court rul­ings that it im­per­mis­si­bly copied fea­tures of Ap­ple's iPhone. The court left in place rul­ings in favour of Ap­ple in­volv­ing its patents for smart-phone fea­tures that in­clude auto-cor­rect and a slide that un­locks the de­vice.

The big­gest ris­ers on the FTSE 100 were Con­va­tec Group up 6.9p at 188.9p, Burberry Group up 49p at 1,464. and BHP Bil­lion up 36 1/2p at 1,464p.

The big­gest fall­ers were G4S down 6.9p at 279.6p, RSA In­sur­ance Group down 10p at 607 1/2p and ITV down 2.3p at 157 1/2p.

Newspapers in English

Newspapers from UK

© PressReader. All rights reserved.