Rising oil price powers FTSE to six-month high
OIL heavyweights have lifted the Footsie to its highest level in more than six months, after Donald Trump tightened sanctions on Iran.
The US had granted countries such as China, India and Japan, which still buy oil from Iran, exemptions from sanctions which would prevent them from dealing with the Middle Eastern country.
But President Trump decided on Monday to end those exemptions, meaning any countries which now import oil from Iran could face punishments themselves. Prices of crude oil climbed as the US beefed up its stance against the world’s fourth-largest producer. Trump wants to bring Iran’s oil exports to zero, which would diminish the amount of crude in the market and push up its price.
Investors were quick to muscle in on the predicted gains. Fuel giant BP edged up by 2.6pc, or 14.8p, to 582.5p, while Shell climbed by 2.3pc, or 57.5p, to 2541.5p. The FTSE 100 closed at its highest level since late September at 7523.07, up 0.9pc, or 63.19 points from last Thursday.
Oil’s influence was even more pronounced on the FTSE 250, where Cairn Energy jumped by 5.4pc, or 9p, to 174.7p, Premier Oil lifted by 4.6pc, or 4.7p, to 106.2p and Tullow Oil climbed 3.3pc, or 8p, to 250p.
Even companies which provide services to the oil industry reaped gains – John Wood was up 5pc, or 25p, at 530p and Petrofac ended the day 3.9pc, or 18.1p, higher at 485.5p.
Airlines drew the short straw from oil’s rise, amid renewed worries that higher fuel prices could add to cost pressures. EasyJet was the FTSE 100’s biggest loser, falling 3.9pc, or 47p, to 1172p. British Airways parent IAG dipped 3.3pc, or 18.2p, to 539p, and Wizz
Air slid 2.7pc, or 92p, to 3376p. In an announcement after the market closed, high- interest lender Amigo (down 0.2pc, or 0.5p, to 256.5p) said its boss Glen Crawford is standing down because he needs treatment for a spinal condition.
He will be succeeded by Hamish Paton, who was due to join the firm next month as its chief commercial officer. Crawford will stay on until the summer to hand over to Paton. Fishing tackle firm Angling
Direct has netted record results for the start of the year, while also opening yet another new store.
Proving once again to be a bright spot in the currently muddy world of retail, it said overall sales were up by 50.7pc in February and March compared to the same period last year.
Same- store sales shot up by 28.5pc, and Angling Direct managed to reel in 29.5pc more visitors to its shops. The company insists it is planning to open more stores in 2019. Shares leapt by 8.2pc, or 5.5p, to 73p.
There was trouble in the air for a couple of metals firms. Iron ore pellet producer Ferrexpo slid 4pc, or 11.4p, to 275.2p as it admitted some funds of a Ukrainian charity it donates to ‘could have been misappropriated’.
In February it found inconsistencies during its audit relating to payments made to the Blooming Land charity, which coordinates Ferrexpo’s corporate social responsibility programme. An independent review is ongoing. At precious metals miner Polymetal International, a massive 88.5pc of voting shareholders at its annual meeting condemned the election of banker Artem Kirillov as a director.
He had been nominated by Russia’s Otkritie Bank, which owns 6.9pc of Polymetal, but other shareholders worried that he was not independent. Even though he will not be appointed, shares slid by 1.8pc, or 14.4p, to 802p.