FTSE ends week on a high as oil and mining companies gain
1 September 2023, 17:24
The index had gained a little over 25 points by the end of the day.
The FTSE 100 got back into winning territory on Friday as London’s natural resources sector helped it end the week on a high.
By the end of the day, the index had gained 25.41 points, or 0.3%, ending at 7,464.54.
It contrasted with some of the FTSE’s peers on the continent where the German Dax closed down 0.7% and the Cac 40 in Paris lost 0.3%.
It was the carmakers of Europe that led the declines as bankers downgraded their outlooks for Volkswagen, Renault and BMW.
“The FTSE 100 has rebounded from yesterday’s decline helped by a buoyant basic resource and energy sector, with oil prices back at their highest levels this year, helping to lift BP and Shell, with Rio Tinto and Glencore also firmer on the back of higher copper prices,” said CMC Markets analyst Michael Hewson.
In New York, the S&P 500 was down 0.1% and the Dow Jones was trading flat shortly after markets closed in Europe.
The pound fell by 0.6% to 1.259 dollars, and was down 0.1% to 1.167 euros by the close of play in Europe.
In company news, the Financial Conduct Authority has forced insurance group Direct Line to pay out £30 million in compensation to customers.
People had been overcharged when renewing their home and car insurance, the watchdog said. Direct Line admitted it had made an “error” when implementing new rules at the start of 2022.
The rules were put in place to prevent existing customers being charged higher prices than new customers.
Shares in Direct Line Insurance Group closed down 2.4%.
Meanwhile Superdry, whose shares were suspended earlier in the week, said that the last year had been “exceptionally challenging,” and that it had been pushed into a £78.5 million loss before tax. The company had made a £17.6 million profit the year before.
The biggest risers on the FTSE 100 were Johnson Matthey, up 160.5p to 1,790.5p, BP, up 13.3p to 500.8p, Rio Tinto, up 100p to 4,972.5p, Anglo American, up 35.5p to 2,136p, and Antofagasta, up 23p to 1,471p.
The biggest fallers on the FTSE 100 were Admiral Group, down 60p to 2,430p, Land Securities, down 11p to 591.6p, IAG, down 2.65p to 159.35p, United Utilities, down 15p to 932p, and Segro, down 11.6p to 725.8p.
