FTSE close: Admiral up; Resolution dividend

 

17.20 (close)

City trader traders stock exchange market

The London market ended slightly higher as lower oil prices hit the energy sector and overshadowed a strong session for UK insurers.

The FTSE 100 Index finished up 1.5 at 5864.6, as a stronger opening for Wall Street's Dow Jones Industrial Average gave a late boost.

Traders in the US put several days of heavy losses behind them and turned their focus to a speech by Federal Reserve chairman Ben Bernanke on the outlook for the US economy.

The dollar was weak against both the pound at 1.64 and euro ahead of Mr Bernanke's speech. Factory orders in Germany also came in much stronger than expected. The euro rose to 1.12 against sterling.

The oil and gas sector weighed on the market as crude oil on the New York Mercantile Exchange for July delivery dropped 0.2% to 98 US dollars a barrel.

The cost was driven down by the prospect of slowing US economic growth and expectations that OPEC members will vote tomorrow to boost production at the organisation's member meeting in Vienna, Austria.

Petrofac lost 18p to 1544p, Royal Dutch Shell dropped 11p to 2132.5p, Essar Energy was off 3.9p at 434.5p, Cairn Energy edged 1.9p lower at 427.5p and BP was down 2.7p at 448.2p.

The London market was given support from Friends Life owner Resolution after the insurance consolidation firm said it planned to return around £500m to shareholders. The stock shot up nearly 3% to the top of the risers' board and was 8.4p higher at 308.3p.

Fellow insurers followed suit, with Admiral up 28p at 1737p, Legal & General ahead 2p at 115.6p and Standard Life advancing 2.6p to 206.2p.

Elsewhere in the financial sector, Lloyds Banking Group recovered some of yesterday's losses as the taxpayer-backed bank moved ahead 0.7p to 47.6p.

The heavily-weighted mining sector lifted the blue-chip index with Anglo-Australian firm Rio Tinto adding 51p at 4199p, Xstrata up 15p at 1370.5p and Vedanta Resources ahead 22p at 2080p.

Fashion house Burberry also built on recent gains, rising 5p to 1312p, after an upgrade from broker Goldman Sachs and speculation that French multi-national company PPR may be looking for acquisitions in the luxury goods sector.

TUI Travel made a bid to avoid relegation from the FTSE 100 Index in this week's quarterly review by rising 0.3p to 225.3p.

The retail sector came under pressure after a British Retail Consortium survey revealed sales values were 2.1% lower on a like-for-like basis in May.

Marks & Spencer dropped 1.7p to 378.5p, Next fell 3p to 2272p and Primark owner Associated British Foods dipped 5p to 1069p after the BRC said May's figures were more reflective of the broader retail picture.

Outside the top flight, shares in entertainment retailer HMV lost earlier gains and plunged 12% after it announced a refinancing deal with lenders.

The agreement gives the chain breathing space in its battle for survival, but shares dropped 1.75p at 10.5p as investors digested the terms of the debt package and potential impact on existing shareholders as a result of giving lenders a stake in the business.

The biggest Footsie risers were Resolution up 8.4p at 308.3p, Centrica ahead 7.8p at 322.3p, Legal & General up 2p at 115.6p and Admiral ahead 28p at 1737p.

The biggest Footsie fallers were Whitbread down 29p at 1552p, Smiths Group off 22p at 1201p, Reed Elsevier down 10p at 546p and Amec off 18p at 1109p.

15.40: The FTSE 100 is 12.2 points higher at 5,875.3 as the end of the session approaches.

The oil and gas sector has weighed on the market as crude oil on the New York Mercantile Exchange for July delivery dropped 0.2% to $98 a barrel.

The cost was driven down by the prospect of slowing US economic growth and expectations that OPEC members will vote tomorrow to boost production at the organisation's member meeting in Vienna, Austria.

Petrofac lost 20p to 1542p, Royal Dutch Shell dropped 17.5p to 2126p, Essar Energy was off 3.3p at 435.1p, Cairn Energy edged 1.4p lower at 428p and BP was down 1.2p at 449.5p.

Brent crude is trading at just under $115 a barrel.

Gold was fixed this afternoon at $1,545 an ounce compared with $1,549 at the previous close.

The Dow Jones is 77.2 points higher at 12,167.2.

14.45:

The Dow Jones has opened up 45.6 points at 12,135.6, clawing back some of yesterday's losses ahead of Mr Bernanke's speech in Atlanta later.

The FTSE 100 is 7.1 points higher at 5,870.4.

13.20:

The Dow Jones is expected to rebound this afternoon as traders turn their focus to a speech by Federal Reserve chairman Ben Bernanke later on the outlook for the US economy.

In London, insurer Resolution led the sector higher after news it plans to return £500m to shareholders.

The stock rose 9.8p to 309.7p. Admiral was up 35p at 1744p, Legal & General was ahead 1.9p at 115.5p and Standard Life advanced 2.7p to 206.3p.

Meanwhile, the retail sector came under pressure after a British Retail Consortium survey revealed sales values were 2.1% lower on a like-for-like basis in May.

The BRC said May's figures were more reflective of the broader retail picture than the earlier period which was distorted by the later Easter and extra bank holiday.

Marks & Spencer dropped 3.3p to 376.9p, Next fell 3p to 2272p and Primark owner Associate British Foods dipped 2p to 1072p.

The FTSE 100 is 4.5 points up at 5,867.7.

11.30:

The average price of UK residential properties has fallen at its fastest yearly rate in nearly two years, according to Halifax.

Property values fell 4.2% in the three months to May compared to the same three months last year, the Halifax's house price index showed – the fastest decline for 19 months. We have more here.

Shares in newspaper and magazine wholesaler Smiths News are up 3.25p at 97.25p after it swallowed up Dawson Holdings for £20m in a deal it hopes will boost its position in the eBook market.

Dawson stock is up 2.75p at 17p. We have more here.

The FTSE 100 is trading 17.3 points higher at 5,880.5.

11.10:

In corporate news today, HMV has pulled back from the brink of collapse after it reached a deal with its creditors to refinance £220m in loans.

Shares in the battered High Street name shot up 12% or 1.5p to 13.75p this morning, after Lloyds Banking Group and Royal Bank of Scotland agreed to give HMV two years' breathing space on its lending facility.

Here's more.

Meanwhile, the FTSE 100 is 8.68 points higher at 5871.84.

›› Five mistakes made by investors (and their financial advisers)

09.30:

The FTSE 100 gained today with fashion house Burberry enjoying a positive broker note, while 'zombie' insurer Resolution had good news for investors.

In early trading the FTSE 100 was 16.19 points higher at 5879.35.

The improvement for the Footsie followed a drop of 0.5% for the Dow Jones Industrial Average as markets in New York retreated to their lowest level since mid-March.

London's resilient performance included a rise of 3% for Friends Life owner Resolution after the insurance consolidation firm said it planned to return around £500m to shareholders. The stock was 9p higher at 308.9p.

Fashion house Burberry also built on recent gains, rising 25p to 1332p, after an upgrade from broker Goldman Sachs and speculation that French multi-national company PPR may be looking for acquisitions in the luxury goods sector.

TUI Travel made a bid to avoid relegation from the FTSE 100 Index in this week's quarterly review by rising 4.3p to 229.3p, a gain of more than 1%.

Outside the top flight, shares in entertainment retailer HMV jumped by as much as 10% at stage after it announced a refinancing deal with lenders.

The agreement gives the chain breathing space in its battle for survival, but shares later dropped back to stand just 0.1p higher at 12.3p as investors digested the terms of the debt package and potential impact on existing shareholders as a result of giving lenders a stake in the business.