BP’S progress helps market finish higher

The FTSE 100 tipped into positive territory at the close of play after it was buoyed by a strong showing from BP.

Investors welcomed the oil giant’s decision to cut its dividend as it helped to offset a disappointing set of figures for fellow multinational Diageo and bring the index into the green, as company news dominated proceedings.

London’s top-flight index closed 3.15 points higher at 6,036 points at the end of trading.

David Madden, market analyst at CMC Markets UK, said: “The last few hours of trading hours were muted as there has been little in the way of big macroeconomic news to influence sentiment.

“As we approached the end of the trading session, the major equity benchmarks of Europe were showing modest gains, while the Dax 30 was underperforming.

“There were plenty of corporate stories today, but the lack of a deal between Republicans and Democrats in relation to the one trillion dollar Covid-19 pandemic package has kept sentiment at bay.”

Travel and aerospace firms rebounded to push higher, with British Airways owner IAG and Rolls-royce both closing with strong gains.

In company news, BP closed 18.2p higher at 299.25p despite swinging to a $6.7 billion underlying replacement cost loss in the second quarter of the year.

Diageo saw shares sink in value after profits were almost halved after it was hit by the closure of bars, as well as a £1.3 billion writedown. The Johnnie Walker maker fell by 160p to 2,721p as total sales also dived by 9 per cent as a result of the pandemic.

Roadside recovery firm AA saw shares surge after it said it was approached by three parties vying to snap up the business.

It closed 4.2 up at 29.2p at the end of trading, due to the talks with suitors as it looks to reduce its £2.6bn debt pile.

Double glazing specialist Safestyle closed 0.9p higher at 28.65p after the UK government released details of its Green Homes Grant scheme which goes live at the end of September.

The biggest risers on the FTSE 100 included Melrose, up 8.28p at 96.5p, and BT ,up 8.08p at 106.1p.