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The Markets
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The Markets
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK

Investments and investor services

Top flight shares pare gains on lower oil prices and UK retail sales

Falling oil stocks weigh on markets as crude prices drop

London shares pared gains in early afternoon trading as oil prices dropped and UK retail sales disappointed.

The FTSE 100 Index retrenched to stand 1.4 points ahead at 6668 as West Texas Intermediate crude fell 3.4% to US$49.19. Brent crude dropped 1.62% to US$56.13.

News of higher-than-expected oil inventories and demand concerns was driving crude prices down, prompting investors to pull out of oil and gas majors.

BP (LON:BP.) leaked 4.15p to 402.45p, Royal Dutch Shell (LON:RDSB) reversed 3.5p to 1797p, BG Group (LON:BG.) deflated 3.5p to 1052p and Cairn Energy (LON:CNE) softened 4.7p to 165.5p.

Miners recovered after Wednesday's slide, with Rio Tinto (LON:RIO) advancing 3.5p to 2506p and Anglo American (LON:AAL) lifting 3.3p at 816.8p, although another early riser, BHP Billiton, (LON:BLT) subsided 0.5p to 1179.5p.

UK retail sales fell unexpectedly by 0.2% last month against a month earlier as shoppers bought fewer household goods.

The annual rate of sales growth fell to 4% from 4.7% in May - its slowest since September last year. Analysts had expected a rise.

Some retailers dropped following the news including Marks & Spencer (LON:MKS), which backtracked 3.5p to 531.5p, and Sainsbury's (LON:SBRY), which slipped 7p to 265.6p.

The news dampened early positive sentiment generated by Greece's approval of a second batch of reforms specified by the country's international creditors.

But Mike van Dulken at Accendo Markets said: "While the vote sailed through thanks to opposition support, Greek PM Alexis Tsipras suffered persistent dissent meaning snap elections are a real possibility."

As on most Thursdays, the corporate news flow in the UK was heavy, with the likes of Unilever, Reed Elsevier, Shire, Kingfisher, SABMiller and SSE all reporting.

Pot Noodle and Marmite maker Unilever (LON:ULVR) was 61p tastier at 2920p on news of higher first half turnover and sales in tough markets.

Brewer SABMiller (LON:SAB) dropped 20p to 3419.5p as lower lager demand offset fizzing sales of soft drinks.

B&Q owner Kingfisher (LON:KGF) ticked up 5.3p to 372.3p as it reported a summer sales boost.

Insurer RSA (LON:RSA) reversed 2.4p to 447.1p after gains yesterday sparked by rumours of a potential takeover by a rival. Germany's Allianz, Switzerland's Zurich Insurance and Italian insurer Generali had previously been mentioned as potential suitors.

Soft drink maker Britvic (LON:BVIC) lost its fizz by 12.5p to 722.5p as it bought Brazilian rival Empresa Brasileira de Bebidas e Alimentos for about £120.8mln.

Fund manager Aberdeen Asset Management lost 28.4p to 371.1p on news of a fall in assets under management to £307.3bn from £330.6bn at the end of March, affected by market conditions and currency movements.

Healthcare services provider Totally (LON:TLY) perked up 0.05p to 0.25p as it reported higher half-year turnover and gross profits, while underlying losses narrowed.

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