FTSE close: Sky gains; Travel firms, Aviva up

 

17.05 (close)

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An improved outlook on the crisis in Libya and a raft of positive blue-chip updates saw the FTSE 100 Index break back through the 6000 barrier today.

The FTSE 100 Index closed 90.2 points higher at 6005.1 after reports suggested the President of Venezuela, Hugo Chavez, who is known to be close to Libyan leader Muammar Gaddafi, was trying to broker a deal to restore peace to the North African state.

Oil prices, which have soared in the last few weeks, calmed - with London Brent crude pulling back more than 1% to 114 US dollars a barrel.

The impact of softer oil prices was reflected on an extensive risers' board with Thomson Holidays owner TUI Travel up 12p at 243.1p and British Airways owner International Consolidated Airlines ahead 6.1p at 232.3p.

Elsewhere, further cheer was provided by the US Labor Department, which said first-time claims for unemployment benefits dropped to 368,000 last week, when economists had expected a rise to 398,000.

In Brussels, a hawkish statement from the president of the European Central Bank hinting at a possible interest rate hike next month saw the euro surge against the pound and dollar. Sterling stood at 1.16 against the single currency and down at 1.62 against the dollar.

However, the big development of the session involved BSkyB after Culture Secretary Jeremy Hunt gave his provisional backing to News Corporation's planned takeover of the broadcaster.

With News Corp agreeing to spin off Sky News but retain a 39% stake, investors took the view that a deal for BSkyB had moved a step closer.

Shares rose nearly 3% or 24p to 823p, even though the Financial Times said those BSkyB investors hoping for more than 750p to 800p a share were likely to be disappointed.

In another busy session for corporate news, shares in insurance giant Aviva pushed higher after it posted a better-than-expected rise in operating profits.

The group saw profits increase by 26% to £2.55bn in the year to December 31, slightly ahead of forecasts as shares rose 7.6p or 2% at 457.3p.

Outside the top flight, JJB Sports was once again on the back foot after the ailing retailer revealed it had offered landlords a pay-out of up to £7.5m in a bid to push through a deal that could see 89 stores close as it battles to stave off administration. JJB shares fell 3.3p to 17.8p.

Taylor Wimpey cheered investors with its full-year results as it announced a return to the black and saw shares lift 2p to 41p.

The housebuilder, which has shifted its focus onto maximising the value of each home sold, reported pre-tax profits before exceptional items of £75.1m in 2010, against losses of £96.1m the previous year.

The biggest Footsie risers were IMI up 58p at 943p, Amec ahead 61p at 1190p, TUI Travel up 10.7p at 241.8p and Weir Group ahead 68p at 1770p.

The biggest Footsie fallers were Autonomy down 17p at 1657p, African Barrick Gold off 4.5p at 577.5p, Investec down 3.5p at 466.1p, and Standard Life off 1.7p at 230.8p.

16.15: The Dow is up 150 points (1.24%) at 12,216.8 helped by US Labor Department figures saying first-time claims for unemployment benefits dropped to 368,000 last week, when economists had expected a rise to 398,000.

Investors also breathed a sigh of relief at a modest fall in oil prices, hoisting the FTSE 100 up 85 to knock on the 6,000 barrier.

15.40:

Over on Wall Street, the Dow Jones has opened higher and is 148 points up at 12,214.68 in early trading.

That's made a good day for the FTSE 100 even better and the UK index is now 83.51 points higher at 5998.40.

14.50:

Another construction giant, another surge in profits, another cautious forecast for the year ahead; Balfour Beatty saw profits lift 21% to £338m in 2010, and its shares are up 9.5p (2.8%) on the day so far at 351.1p.

For the full story click here.

The Footsie has lost ground now, dipping 20.9 points on the day at 5,914.9.

13.45: Insurance giant Aviva has reported higher profits today.

Aviva made £2.55bn last year, beating expectations. Full details here.

Aviva shares are 11.4p higher at 461.10p

Overall, the FTSE 100 is 75.28 points higher at 5990.17.

In economy news, hopes that the UK economy is bouncing back from its winter lull were dealt a blow today by figures showing a slump in the critical services sector.

The February purchasing managing index (PMI) for services - which is a strong indicator for three-quarters of the UK economy - fell to 52.6 from January's 54.5.

12.45:

Oil prices, which have soared in the last few weeks with continued violence in Libya, have calmed - with London Brent crude pulling back nearly 1% to $115 a barrel.

The softer prices were reflected on an extensive FTSE risers' board by lunchtime, with Thomson Holidays owner TUI Travel up 3.1p at 234.2p and British Airways owner International Consolidated Airlines ahead 3.9p at 230.1p.

In another busy session for corporate news, shares in insurance giant Aviva pushed higher after it posted a better-than-expected rise in operating profits.

The group saw profits increase by 26% to £2.5bn in the year to December 31, ahead of the £2.4bn analyst consensus forecast. The stock was up 10.4p at 460.1p or 2%. Read the full story here.

Outside the top flight, JJB Sports was once again on the back foot after the ailing retailer revealed it had offered landlords a pay-out of up to £7.5m in a bid to push through a deal that could see 89 stores closeas it battles to stave off administration.

JJB shares fell 1.8p to 19.2p.

The Footsie is steady at 5,987, currently up 72 on the day.

11.45: In other corporate news, builder Taylor Wimpey has reported a return to profit.

Pre-tax profits were £75.1m in 2010 against losses of £96.1m the previous year. The shares are 2%, or 0.8p, higher at 39.8p

There's more here.

Overall, the FTSE 100 is 76.77 points higher at 5991.66.

10.55:

The Footsie is enjoying a rare day in the sun. The index has only risen in one session out of the last nine.

But today it is cruising 55.53 points higher at 5970.42.

News Corp's deal to hive off Sky News as a way out of a full Competition Commission probe into the purchase of BSkyB is the breakout business story today. We've got the full story here.

Investors see the deal, still subject to a consultation period, as broadly positive and BSkyB shares are 19p - 21.4% - higher at 818p.

There was angry reaction from press rivals who are adamant the deal will erode media plurality.

No such concerns from bombastic David Buik, of stockbrokers BGC Partners:

'There was concern over Sky News becoming a mirror image of Fox. I have no wish to be particularly provocative, but so what if it did? Does that really matter? After all the visual media is already quite pink, so a little balance would be no bad thing.

'The other press barons have suggested that the decision taken by Jeremy Hunt was tantamount to a whitewash! I disagree. I think he and OFCOM have handled the issue very delicately and with sensitive dexterity.'

Buik goes on to explain that the Murdoch agenda is not domination of the political agenda, but rather a clear run to market Sky+ boxes in the US, EU Asia.

09.55:

The FTSE 100 index made rare gains, following US markets higher, while investors welcomed a deal to ease the purchase of BSkyB and Aviva fell despite a rise in profits.

UK shares recouped losses today as upbeat US employment figures helped markets regain their composure in the face of sky-high oil prices.

Brent crude rose 23 cents to $116.58 yesterday, while US crude rose 31 cents to $102.54

The Footsie stood 24.06 points higher at 5938.95 as Asian markets built on modest Wall Street gains seen on Wednesday after a key report gave hope the dark days for the American jobs market may be over.

The big development of the session involved BSkyB after Culture Secretary Jeremy Hunt gave his provisional backing to remedies proposed by Rupert Murdoch's News Corp for the media giant's planned takeover of the broadcaster.

With News Corp looking to spin-off Sky News but retain a 39% stake, investors took the view that a deal for BSkyB had moved a step closer. Shares rose 2.25% or 18p to 817p, even though the Financial Times reported a person familiar with News Corp's strategy as saying that those investors hoping for more than 750p to 800p a share were likely to be disappointed.

In another busy session for corporate news, shares in insurance giant Aviva fell 1.2p to 448.5p despite it reporting a 26% rise in operating profits to £2.55bn - a performance in line with City expectations.