Thursday morning business bulletin
Jul 24 2008 By nebusiness
The London market lost its recent momentum today as lower oil prices weighed on some blue-chip stocks.
Heavyweight oil and commodity stocks were on the back foot in early trading with crude slipping to 124 US dollars a barrel, leaving the FTSE 100 Index 33.3 points lower at 5416.6.
Oil and gas firm BG Group was the leading faller, off 4% or 50p to 1090p despite beating City forecasts with interim figures.
Prospectors Tullow Oil also featured prominently among the fallers, down 26p to 739.5p, while energy firm Scottish & Southern Energy slipped 52p to 1393p after warning of first half profits ``substantially lower" than last year.
Among the risers, B&Q owner Kingfisher set the pace with an 11% leap, or 12.5p to 129.2p, after a better than expected performance from the DIY chain. The company reported solid trading despite pressure on consumer confidence.
Engine maker Rolls-Royce today said the broad scope of its business would help it cope with ``uncertain conditions" in the airline industry.
Chief executive Sir John Rose said its civil aerospace operation was ``not immune" to higher oil prices and economic slowdown but added that demand for newer wide-bodied aircraft remained strong, while the group’s other marine and energy divisions performed well.
``We are confident that we will continue to deliver profitable growth and positive cash flow for the full year," he added.
The group, which has major UK plants at Bristol and Derby and a training academy in Newcastle, posted underlying pre-tax profits of £410 million for the first half of 2008 - 8% ahead of last year and slightly ahead of City forecasts.
Low-cost airline easyJet said today it had offset more than 50% of an anticipated £185m rise in its annual fuel bill.
In a trading update, the Luton-based operator forecast pre-tax profits of up to £120m for the year to the end of September, with revenues and cost-saving measures helping it to cope with soaring oil prices.
It said third quarter passenger numbers were up by 16% amid continued strong growth at Gatwick and mainland Europe, but added capacity growth would be reduced this winter as it adapts to current trading conditions.
The pound at 9am was US$1.9938 compared to US$2.0022 at the previous close while the euro at 9am was £0.7872 compared to £0.7844 at the previous close.
