Dare to dream and make your ultimate trip a reality

Email registration

Free weekly email update

Great products and special offers for Spectator readers

Click here for great value events

Click here for exclusive articles, offers, tasting notes and discussion

FTSE finishes the day strongly

END-OF-DAY REPORT: Headline shares finished the day strongly, led by a buoyant mining sector, and with oil heavyweights rising as crude prices again moved higher thanks to Tropical Storm Gustav, and with Wall Street also gaining ground.

At the close of play, the FTSE100 was up 57.4 points at 5,228.1 with the FTE250 ahead 3.5 points at 9,137.1 and the FTSE Smallcaps 3.2 points stronger at 2,798.3.

NEW YORK

As London closed, the Dow Jones Industrial Average was up 39.98 points to 11,452.85, while the S&P500 was up 2.91 points at 1,274.42 and the Nasdaq Compossite gained 7.63 points at 2,369.6.

Orders for US-made durable goods surged in July, rising 1.3% on strong transportation equipment demand, the Commerce Department reported today.

The Department of Energy reported that crude oil inventory levels for the week ended August 22nd fell 177,000 barrels. Analysts had forecast an increase of 1.1 million barrels. Gasoline stockpiles fell by 1.2 million barrels.

LONDON MARKETS

Chilean copper miner Antofagasta this morning revealed that high commodity prices and increased production drove first-half profits up 15% to $1.66bn, despited an increase in operating costs. Revenues at the group rose 24% to $2.4bn.

The company said that the fundamentals for both the copper and molybdenum markets are firm.

Antofagasta shares added 22p at 592p, while other sector heavyweights also benefited.

Anglo American was up 80p at 2,879p, Rio Tinto 93p better at 5,243p, ENRC up 42p at 1,043p and Xstrata 53p higher at 3,076p.

On the New York Mercantile Exchange this afternoon, October crude was up $2.98 at $119.25 per barrel, on fears that Tropical Storm Gustav would return to hurricane strength and as the dollar weakened.

Heavyweight BP rose 9.5p to 525.75p and Shell was up 41p at 1,880p.

Also among the oil fraternity, explorer Tullow Oil, which has extensive operations across Africa, saw first-half profits surge 181% to £187m as revenues climbed 33% to £378m. The group said it is optimistic about the prospects in Ghana and Uganda.

Tullow shares were up 23.5p at 817p, with peer Cairn energy 131p stronger at 2,911p.

Oil services company Petrofac reported better-than-expected first-half financial results, as net profit jumped 57% to $121.2m from a year ago, helped by strong demand, adding it is well positioned to deliver financial results at the top of end of expectations. The shares gained 37p to 629.5p.

The rise in crude prices hit British Airways, down 2.25p at 243p.

Amongst financial issues, insurer Admiral Group succumbed to profit-taking after yesterday's results, sliding 28.5p to 931p.

Taylor Nelson Sofres today reported underlying revenue growth of 5.1% for the first half.
TNS, which has been fighting off a £1.1bn hostile takeover bid from advertising group WPP, said its order book gave it confidence in its full-year target to increase underlying sales by about 6%. TNS shares were 1.75p lower at 267p, while WWP gained 4p to 510.5p.

Taylor Wimpey, one of the biggest UK housebuilders, plans to scrap its interim dividend payment after first-half profits plunged 96% to just £4.3m.

The builder, which expanded aggressively into the US as America's housing market slowed, also announced a write-down on its landbanks in the UK, North America and Spain totalling £690m. The company said it remained in full compliance of its debt covenants.

Taylor Wimpey shares dipped 3.75p to 48.25p, dragging down the rest of the sector with it.

Barratt Developments fell 2.75p to 132.5p, Bellway was 8.5p lower at 594p and Persimmon fell 5.75p at 348.75p.

Anglo-Danish firm G4S, the world's biggest security and guarding company, was upbeat about its prospects, despite the global economic slowdown. The group reported a 13.5% rise in pre-tax profits to £109m as revenues rose 26% to £2.7bn. The shares added 12.5p at 224p.

Finally, newspaper group Johnston Press, down 3.5p at 47.5p, announced it has cancelled its dividend after unveiling a loss of £53.7m in the first half as revenues fell 6.3% to £293.1m as advertising revenues tumbled. The group also recorded an impairment charge of £109m.

More articles from: this section

Print this article   |   Email to a friend   |   Permalink   |   Comment

Post this entry to:   del.icio.us | Digg | Newsvine | NowPublic | Reddit

Advertisement

Spectator Business | Apollo Magazine

Corporate | Advertising | Privacy | Terms

Spectator, 22 Old Queen Street, London, SW1H 9HP

All Articles and Content Copyright ©2008 by The Spectator | All Rights Reserved