The FTSE 100 index finished down for the fifth session in a row yesterday despite staging fight back as oil prices eased down from their recent highs.
Brent crude oil prices had pushed up to more than $119 a barrel in early trading as the continuing crisis in Libya threatened production, but they fell to about $114 after reports that oil cartel OPEC had said it could make up the shortfall.
The Footsie, which had been down by 60 points earlier in the day as oil prices hit their highs, regained most of its losses but still closed down 3.6 points at 5920.
The fight back was driven by a rally in the price of oil companies whose shares increased as oil prices fell away. Tullow Oil was up three per cent, while BP and Royal Dutch Shell were both up one per cent
Libya accounts for nearly two per cent of the world’s oil production and prices have soared as some foreign oil companies have been forced to abandon production in the country.
The pound surrendered some of its recent gains against the pound and the dollar after the CBI’s distributive trades survey revealed a sharp slowdown in retail sales volumes this month. The pound was at 1.61 against the greenback and 1.17 against the single currency.
In a busy session for corporate results, part-nationalised Royal Bank of Scotland fell four per cent or 1.7p to 45.6p as losses of £1.1 billion came in higher than market expectations, offsetting comments from chief executive Stephen Hester that the bank’s five-year turnaround plan remained on track.
Lloyds Banking Group, which is expected to post profits of around £2 billion tomorrow, rose 0.3p to 65.8p.
Centrica regained its poise after a shaky start, up 1.5p to 333.6p, as it reported a 29 per cent jump in profits to £2.4 billion, a performance that included a record surplus of £742 million from its British Gas residential arm.
Analysts said the results did little to ease fears that Ofgem could refer the energy sector to the Competition Commission for further investigation.
Support services firm Capita topped the risers board, lifting 48p to 718p, after a 12 per cent rise in underlying profits and a record pipeline of contract bids at £4.7 billion.
It cheered investors by saying its markets were becoming more active and that it stood to benefit from this trend.
Outside the top flight, shares in drinks firm Britvic slumped 12 per cent after it warned a “rapid and unprecedented” surge in raw material costs would stifle profit growth this year.
The Robinsons and Tango maker said it had been adversely impacted by the rising cost of steel and sugar, as well as plastic material PET, which is used to make drinks containers. Shares were 44.8p lower at 373.2p.
The top Footsie risers were Capita up 48p to 718p, Tullow Oil ahead 40p at 1389p, Antofagasta up 35p at 1348p, and Serco ahead 14p at 543.5p
The top Footsie fallers were Essar Energy down 24p at 491p, Royal Bank of Scotland off 1.72p at 45.6p, Prudential down 25.5p at 680.5p, and International Consolidated Airlines Group off 8.2p at 226.2p.