Markets: Greeks could be bearing gifts for FTSE

By DOMINIC JEFF
Published on Tuesday 24 January 2012 03:59

RISING hopes that Greece will avoid default by thrashing out a deal with lenders pushed London’s leading shares index to a six-month high yesterday.

This, and other hopeful signs from the eurozone, edged the FTSE 100 Index 54.01 points higher to 5,782.56 – its highest close since the end of July, before stocks slid amid fears over the world economy.

Chris Beauchamp, market analyst at IG Index, said: “The calm of the morning session came to an end following news of yet more successful bond auctions in the eurozone and the continued absence of any bad news surrounding the interminable Greek debt talks.”

There was further improvement for Royal Bank of Scotland, which added 0.7p to 28.2p.

Commodity stocks surged after Brent crude oil rose 3 per cent to $110 per barrel as the EU imposed sanctions on Iran. Energy giant BP was 9.3p higher at 476.7p.

Essar Energy topped the blue-chip risers board with a gain of 11 per cent, or 13.1p, to 135.6p after announcing an increase in gas reserves at its Raniganj exploration block.

And Cairn Energy, which has failed to strike oil in recent months, cheered 1.6p to 292.2p after it said it had brought in Norway’s StatOil as a partner to help in the next phase of its Greenland exploration.

Disappointing business confidence figures in France added to recent pressure on Darty owner Kesa Electricals, which dropped 3.3p to 68.3p. Kingfisher, which owns Castorama in France as well as B&Q in the UK, fell 2.2p to 258.1p.

Shares in Fife-based eye scanner specialist Optos gained more than 4 per cent after it revealed strong revenue growth even as it prepares to launch a new model. It was up 8.75p at 217.75p.

NEW YORK: US shares ended little changed last night as investors took a pause from a recent rally, awaiting earnings from bellwethers such as Apple later in the week.

The Dow Jones industrial average dipped 11.21 points, or 0.09 per cent, to end the day on 12,709.27 while the broader Standar &Poor’s 500 Index edged up 0.61 point, or 0.05 per cent, to finish on 1,315.99. The Nasdaq Composite Index shed 2.53 points, or 0.09 per cent, to 2,784.17.

Logged in as:

Comment here. Start typing your comment here:

Post comment

Please adhere to our Community guidelines

Your view

Please sign in to be able to comment on this story.