Oil and banks weigh on FTSE
BRITAIN’S blue-chip index dipped yesterday, surrendering much of the previous session’s gains as weaker banking and oil stocks outweighed stronger performances from Next and BSkyB, supported by better sales figures.
The FTSE 100 closed 54.12 points lower at 5,758.11, or 0.9 per cent lower.
Bearish investor sentiment from Europe dragged on the banking sector, with Barclays and Lloyds stripping 8 points from the index, while Standard Chartered also fell heavily after posting weaker-than-expected first quarter results. Investor caution ahead of Friday’s April US government payrolls report also grew after a report showed private employers added 119,000 jobs last month, well short of expectations.
Oil stocks also dragged heavily, BP the biggest faller taking almost five points from the index.
The oil major suffered from a cut in its target price by Credit Suisse following a larger-than-expected drop in profits on Tuesday as it was forced to sell oil fields to pay for a catastrophic spill in the Gulf of Mexico in 2010.
Next, Britain’s second-biggest clothing retailer, met forecasts for quarterly sales, with a weak performance from its stores offset by strong trading at its Directory home shopping business.
The retailer said it now expected earnings per share to rise six per cent, up from previous guidance of five per cent. These results pushed the group’s shares to the top of the FTSE leader board, rising 2.6 per cent.