FTSE Close: BP, Shell, BG Group higher
17.15 (close)
Friday feeling: Shares are seen ending the week higher.
BP led a fresh rally for the FTSE 100 Index today as higher oil prices and the potential resumption of dividend payments cheered investors.
Buoyed by the 3% rise for the heavyweight oil stock, London's benchmark index started the new quarter where it left off after its best September in 13 years.
Gains for other commodity stocks and a 5% jump at gas exploration group BG, amid fresh takeover speculation, meant the FTSE 100 Index closed 44.3 points higher at 5592.9.
The resources sector was lifted by figures pointing to stronger growth in Chinese manufacturing, suggesting the country is not slowing as sharply as feared.
The economic picture in the United States was more mixed as evidence of weaker activity among industrial firms was offset by data showing a slight improvement in consumer sentiment and spending.
With investors clinging to hopes of recovery, oil prices climbed above 80 US dollars a barrel for the first time in six weeks, leading to gains of 31p to 1888p for Royal Dutch Shell and a 34p improvement to 1308p at Tullow Oil.
Shell has been mentioned as a potential suitor for BG Group, which topped the risers board with a gain of 51.5p to 1170p.
New chief executive Bob Dudley's first day as BP boss following the departure of Tony Hayward went well as shares rose 12.7p to 440.5p. Investors were encouraged by his comments that BP's board will consider the return of the company's dividend early next year.
The rise came as BP said the clean-up bill for the Gulf of Mexico oil spill now stood at $11.2bn (£7.1bn).
In currency markets, the euro drew encouragement from economic turnaround hopes as it reached a six-month high against the dollar and edged ahead against the pound. The recent weakness in the dollar, which slipped against sterling today, has been an upward factor in crude prices as it makes oil cheaper for buyers in other currencies.
The wider market will be tested in the coming weeks as the third quarter earnings season looms in the United States and the UK. Marks & Spencer, which is due to post a trading update next week, rose 3.5p to 391.6p and supermarket Tesco lifted 4.1p to 428.1p ahead of half-year results on Tuesday.
In a quiet session for corporate news, claims handling firm Helphire rose 5%, up 2p to 39p, after a return to profits in the year to June 30.
The surplus of £392,000 compared with losses of £149m a year earlier and offset warnings of lower-than-expected trading, as economic conditions and record petrol prices keep drivers off the roads.
The biggest FTSE 100 risers were BG Group up 51.5p at 1170p, ARM Holdings ahead 12.8p at 405p, BP up 12.7p at 440.5p and Lonmin ahead 47p at 1716p.
The biggest fallers were Experian down 19p at 674p, Aggreko off 31p at 1539p, Compass down 9.5p at 521p and Associated British Foods off 18p at 1031p.
15.40: On Wall Street, the Dow Jones opened slightly higher today.
The Dow was 6.97 points higher at 10,795.02.
In London, the FTSE 100 was 60.85 points higher at 5609.47.
14.20:
After suffering a dip at lumchtime, the FTSE 100 is back around the 5,600 mark.
The Footsie is 51.86 points better off today at 5600.48.
12.30: BP has sparked a fresh rally for the FTSE 100 Index today as higher oil prices and the potential resumption of dividend payments cheered investors.
With the City heavyweight up by 3%, London's benchmark index continued in October where it left off following its best September in 13 years.
Gains for other commodity stocks and a 5% jump at gas exploration group BG meant the FTSE 100 Index stood 48.8 points higher at 5598.2.
Oil giant BP made further advances after new chief executive Bob Dudley - who took over from embattled Tony Hayward today - hinted dividend payments could resume within months.
It also emerged that the clean-up bill for the Gulf of Mexico oil spill has risen to £7.1bn and that BP will use assets such as its major Thunder Horse and Mad Dog operations to support a £20bn compensation fund.
BP shares are 12.25p better off at 440.05p.
In a quiet session for corporate news, claims handling firm Helphire rose 9%, up 3.5p to 40.5p, after a return to profits in the year.
11.30:
There was downbeat news from Chartered Institute of Purchasing and Supply's (CIPS) activity index.
The study found weaker demand from the consumer goods sector contributed to the first decline in new export orders since July last year.
But that hasn't knowcked shares - the FTSE 100 remains 50.58 points higher today at 5599.20.
11.00:
On the currency markets the pound has gained on the dollar.
The pound at 10am was $1.5802 compared to $1.5737 at the previous close.
Against the euro the pound was worth €1.1518 compared to €1.1538 at the previous close.
The Footsie has pushed back above 5,6000 - standing 58.74 points higher at 5607.36.
10.00:
The FTSE 100 made strides this morning, starting October strongly with commodities stock such as BG Group leading the way.
The Footsie started the new month in positive territory today after securing its best September rally for 13 years.
US stocks stock also notched up a record overnight, with the Dow Jones Industrial Average enjoying its strongest September since 1939 despite closing in the red on Thursday.
London's top tier rose 39.6 points today to stand at 5588.2 following gains in Asian as stronger growth in Chinese manufacturing suggested the country's economy is not slowing as sharply as feared.
Yesterday's economic indicators from the US were also cheerier, with first-time claims for unemployment benefits down more than forecasted last week, and second-quarter economic growth revised slightly higher to 1.7%.
Among stocks in London today, miners and commodity stocks were benefiting from the brighter global demand outlook.
BG Group led the way with a gain of 46p to 1164.5p, followed by silver miner Fresnillo ahead 28p to 1270p.
Oil giant BP also made further advances after new chief executive Bob Dudley - who takes over officially from embattled Tony Hayward today - hinted dividend payments could resume within months.
The stock rose 5.1p to 432.9p.
Elsewhere, claims handling firm Helphire rose 6%, up 2.3p to 39.3p, on news of a return to profits in the year to June 30.
The gain came despite warnings of lower-than-expected trading in the current year.
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