Citywire for Financial Professionals
Stay connected:

View the article online at http://citywire.co.uk/money/article/a1120633

FTSE hits record high as oil breaks through $80

Oil jumps above $80 a barrel, helping BP and Shell drive FTSE 100 to record closing high, but Royal Mail falls on data fears.

 
FTSE hits record high as oil breaks through $80
 

The FTSE 100 has hit a record closing high, gaining a boost from the strengthening oil rally, as the price of Brent crude broke through the $80 mark.

The UK blue-chip index closed 53 points, or 0.7%, up at 7,788, beating the previous record closing high of 7,779 reached in January. 

'The death of the bull market has been greatly exaggerated, not for the first time in recent history,' said Laith Khalaf, senior analyst at Hargreaves Lansdown.

'A stronger dollar, a rising oil price and the postponement of an interest rate rise can all claim some credit for the recent strong showing from the stock market.'

The FTSE 100 was helped along the way by the oil price, which rose 1.3% to $80.29, its highest level since November 2014, on concerns Iranian exports could fall due to renewed US sanctions.

It marks a fresh milestone for Brent crude, which has rallied by around 20% in dollar terms over the last six weeks, as the Iran sanctions and falling production in Venezuela have sparked supply concerns.

'As Brent hits the psychological level of $80 per barrel traders are questioning whether oil to $100 is a possibility,' said Fiona Cincotta, senior market analyst at City Index.

'Venezuela's problems are unlikely to be resolved any time soon and could be exasperated if Trump aims sanctions at the troubled country, also if the US can get China to loosen energy ties with Iran, then regardless of increased shale production, the price could close in on $100.'

Shares in Shell (RDSb) were up 2.1% at £28.05 while BP (BP) rallied 1.4% to 584p.

Shares in smaller oil explorers and producers were up sharply. On the FTSE 250, Tullow Oil (TLW) rose 5.5% to 268.8p while Cairn Energy (CNE) rallied 4.5% to 262.6p.

Among 'small cap' oil stocks, Premier Oil (PMO) was up 7.4% at 120.7p, EnQuest (ENQ) rallied 3.9% to 42.3p and Ophir Energy (OPHR) added 4.1% to 65.8p. Contractor Gulf Marine Services (GMS) surged 12.8% to 46p.

Royal Mail slumps

Royal Mail (RMG) was meanwhile the heaviest faller on the FTSE 100, down 7.6% at 552.2p as it warned new European data privacy laws could reduce marketing mails.

On the FTSE 250, Ocado (OCDO) soared, up 44.4% at 797.2p as the online supermarket signed a deal with Kroger (KR.N), the largest supermarket chain in the US.

Mothercare (MTC) meanwhile surged to the top of the FTSE Small Cap index, up  24.4% at 26.5p  as the embattled mother and baby products retailer announced its survival plan.

The company will close over a third of its UK stores and said it could secure funding of £113.5 million through refinancing, including a £28 million rights issue. 

Mothercare will also welcome back Mark Newton-Jones as chief executive. 

Newton-Jones was ousted last month by chairman Alan Parker, who then retired just two weeks later.

1 comment so far. Why not have your say?

Tony Peterson

May 17, 2018 at 17:54

I expect a wave of posts warning that a crash is coming from this new high. "The market is a bit toppy" All that sort of stuff.

I"m staying, cheerfully, and fully, invested.

report this

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

The Citywire Guide to Investment Trusts


In this guide to investment trusts, produced in association with Aberdeen Asset Management, we spoke to many of the leading experts in the field to find out more.

Watch Now

More about this:

Look up the shares

  • Royal Dutch Shell PLC (RDSb.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • BP PLC (BP.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Tullow Oil PLC (TLW.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Cairn Energy PLC (CNE.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Premier Oil PLC (PMO.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • EnQuest PLC (ENQ.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Ophir Energy PLC (OPHR.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Gulf Marine Services PLC (GMS.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Royal Mail PLC (RMG.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Ocado Group PLC (OCDO.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Mothercare PLC (MTC.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them

More from us

Archive

Today's articles

Tools from Citywire Money

From the Forums

+ Start a new discussion

Weekly email from The Lolly

Get simple, easy ways to make more from your money. Just enter your email address below

An error occured while subscribing your email. Please try again later.

Thank you for registering for your weekly newsletter from The Lolly.

Keep an eye out for us in your inbox, and please add noreply@emails.citywire.co.uk to your safe senders list so we don't get junked.

Read more...

Charles Stanley drops Woodford from fund buy list

by Daniel Grote on May 22, 2018 at 10:57

Sorry, this link is not
quite ready yet