Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  News  >  Markets

News : Markets
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance ProfessionalsCalendarSectors 

FTSE : Oil and tobacco give FTSE a boost

share with twitter share with LinkedIn share with facebook
share via e-mail
0
09/12/2018 | 12:37pm EST
FILE PHOTO: Pump jacks operate in front of a drilling rig in an oil field in Midland

MILAN (Reuters) - Stronger crude prices and a rally in tobacco stocks gave a boost to Britain's top share index on Wednesday, while a profit warning hit energy provider SSE.

The FTSE 100 ended up 0.55 percent at 7,313.36 points, having hit its lowest point in five months in the previous session.

The internationally-exposed index has lost ground in recent weeks as the pound strengthened, on the back of growing optimism over a Brexit deal, and worries over trade and emerging markets kept investors wary.

However, sterling saw some weakness on Wednesday on reports of a potential challenge to Prime Minister Theresa May.

BP and Shell rose 1.6 percent and 1 percent respectively, after Brent prices reached $80 following a larger-than-expected drop in U.S. crude inventories and as sanctions on Iran added to concerns over global oil supply.

SSE tumbled 8.3 percent to its lowest since February 2011 after it warned first-half profit would halve due to the impact of dry, still and warm weather, and persistently high gas prices.

"It is very rare to see a profit warning from a utility company as they are meant to have fairly predictable income streams ... Ultimately it is a good reminder that even seemingly defensive companies still have operational and regulatory risks," said Russ Mould, investment director at AJ Bell.

The SSE warning weighed on other utilities.

Tobacco stocks were in focus after the U.S. Food and Drug Administration said it was considering a ban on flavoured e-cigarettes in response to an "epidemic" of young people using them.

After the news, BAT and Imperial Brands turned higher to end up 5.8 and 3.2 percent respectively.

The FDA's leader announced a number of steps the agency planned to take as part of a broader crackdown on the sale and marketing of e-cigarettes to kids.

Traders said the action was not as harsh as feared.

Among mid-caps, furniture retailer Dunelm Group reported flat annual profits after taking an 8.9 million pound charge in its efforts to complete the integration of loss-making internet business Worldstores. Its shares rose 11.8 percent.

"With forecasts held, stable trading, an acceleration in store openings to 10 stores for the year ahead, a reasonable showing from the new CEO may well yield some positive momentum in the share price," said Peel Hunt analysts.

Construction company Galliford Try rose 10.5 percent after its full-year pretax profit jumped 145 percent. It also confirmed its 2021 strategic targets.

(Reporting by Danilo Masoni; Editing by Alexander Smith and Mark Potter)

By Danilo Masoni

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news "Markets"
04:22aGlobal Stocks Waver as Trade Talks Resume
DJ
04:10aLONDON STOCK EXCHANGE : Heavyweights HSBC, BHP drag on FTSE; Greggs outperforms mid-caps
RE
03:45aTrade talk optimism helps European shares cling onto October highs
RE
01:57aASIA MARKETS : Asian Shares Rise As Investors Look To Trade Talks In Washington
DJ
01:09aBritish supermarkets battle to secure stocks as chaotic Brexit looms
RE
02/18DAX : Germany bans Wirecard 'shorting' as prosecutors probe FT journalist
RE
02/18Global Stocks Edge Higher as U.S.-China Trade Talks Progress
DJ
02/18LONDON STOCK EXCHANGE : FTSE 100 dips as investors book in profits, pound strengthens; Reckitt shines
RE
02/18EUROPE MARKETS: European Stocks Hold Onto 4-month Highs; Wirecard Soars
DJ
02/18LONDON MARKETS: London Markets Slip After Last Week's Surge; Reckitt Benckiser Adds Jumps 5%
DJ
Latest news "Markets"
Advertisement