|  Updated: 

FTSE 100 close: London index slips despite Shell rising after posting £7.6bn profit

A pause on exporting liquefied natural gas (LNG) is facing backlash from some of the world's biggest energy giants, like Shell.
A pause on exporting liquefied natural gas (LNG) is facing backlash from some of the world's biggest energy giants, like Shell.

London’s FTSE 100 tumbled today despite investors piling into Shell after it launched a fresh buyback funded from its huge first quarter profits.

The capital’s premier index fell 1.04 per cent to 7,707.52 points, while the domestically-focused mid-cap FTSE 250 index, which is more aligned with the health of the UK economy, dropped 0.62 per cent to 19,224.91 points.

Britain’s top stock index’s losses came despite the best efforts of oil mega cap Shell adding over one per cent and to near the top of the FTSE 100 after it unveiled profits topped $9.6bn (£7.6bn), prompting it to launch a new £3.2bn share buy back.

Investors cozied up to the news and hoovered up the Anglo-Dutch firm.

Fellow oil giant BP got in on the action in early doors, advancing 0.56 per cent, before closing sharply lower at more than two per cent.

Calls to step up windfall taxes on UK energy giants are likely to gather pace after BP and Shell’s bumper results this week. The former clocked £4bn in the first three months of this year.

Oil prices have tanked recently on fears the global economy could be squeezed by central banks hiking interest rates aggressively.

Federal Reserve officials backed a tenth successive rate rise last night, raising US borrowing costs 25 basis points to a range of five and 5.25 per cent.

High street bellwether Next shot to the top of the FTSE 100 today, gaining more than three per cent after it maintained its financial guidance for the year.

“The guidance is in line with Next’s traditionally cautious outlook, adding to its previous comments that while it sees some improvement to the overall drag of inflation given reduced factory gate prices and lower freight costs, wage inflation and utility bills remain a thorn in the side which will likely impact overall performance,” Richard Hunter, head of markets at Interactive Investor, said.

Textbook maker Pearson slumped just under two per cent and toward the bottom of the FTSE 100, extending this week’s poor performance that has been driven by concerns that uptake of AI tools could knock demand for its products.

Miner Glencore was the worst performer today, shedding nearly six per cent.

Financials also pegged the FTSE 100, with bank Barclays and insurers Hiscox and Admiral down more than three per cent.

The pound was broadly flat against the US dollar.