FTSE shows some energy in big freeze

Utility stocks helped push Britain's top shares higher yesterday as the UK's Arctic conditions boosted demand for energy, but British Airways toiled as the big freeze disrupted airline services.

The FTSE 100 closed up 19.86 points, or 0.3 per cent, at 5,891.61. The Footsie touched a fresh intra-day year high of 5,913.83 before falling away, although trade was light as the market began winding down for the Christmas holiday at the end of the week.

Jimmy Yates, head of equities at CMC Markets, said: "If this winter wonderland continues it's not only good news for Santa, but an early Christmas present for the utility companies too."

The pound was up against the euro at €1.18, as the single currency continues to struggle in the face of debt worries. Sterling was up against the dollar at $1.55.

Scottish Gas-owner Centrica was up 1.4 per cent or 4.7p at 335.3p, while Perth-based Scottish & Southern Energy was 1.3 per cent or 15p higher at 1,200p.

National Grid joined in the surge, up 2 per cent, or 11p, at 563p as the freezing temperatures boosted demand for electricity and gas.

Oil majors were higher as temperatures in Europe and the US Northeast looked set to remain below freezing this week boosting heating fuel demand.

Oils services firm Petrofac gained 38p or 2.5 per cent to close at 1,551p, while Glasgow-based temporary power supplier Aggreko added 2.4 per cent or 36p to end the day at 1,570p, after winning an exclusive Olympics contract.

With air passengers stranded across the country, British Airways closed at the bottom of the fallers' board, 5p lower at 265.2p.

The snow and ice also meant many shoppers were unable to reach the high street. Next dropped 17p to 1,968p, while Marks & Spencer slipped 2.5p to 372.9p and Tesco dropped 3.3p to 430.1p. Other notable fallers included Whitbread - the owner of coffee shop chain Costa and Beefeater restaurants - which declined 4p to 1,801p.

Outside the top flight, Dixons Retail Group dropped 1.5p to 22.8p and HMV Group, owner of book shop Waterstone's, fell 2.6p to 28.9p.

The banking sector consequently enjoyed a better session, after Friday's warning from Lloyds Banking Group that it would take additional bad debt charges on its 26 billion Irish loan book. Lloyds fought back from earlier losses and added 0.4p to 66.9p, as Barclays also recovered from a weak start to stand 1.3p higher at 261p.

Royal Bank of Scotland, which also has extensive exposure to Ireland, gained 0.6p to 38.5p as it recouped losses seen before the weekend.

Investors were also focused on the gambling sector after Ladbrokes confirmed it was in talks over a possible deal to buy online firm 888 Holdings.

Shares in 888 jumped 18 per cent or 8.8p to 57.6p and Sportingbet rose 0.7p to 59.7p on hopes of further consolidation in the sector. But Ladbrokes investors were nonplussed as shares slipped 1.5p to 126p.

Fund manager Gartmore closed sharply lower, down 8.6 per cent or 9.05p at 95.75p, after the firm confirmed it was considering a takeover approach from rival Henderson at a discount to its recent share price. Henderson was up 0.1p at 130.6p.