London’s blue chips had a mixed day as investors seemed undecided how to react to the ongoing slide in oil prices.
FTSE 100 see-sawed higher and lower and by lunchtime was more or less back where it started with a decline of 3 to 5,800.
Like many other indices around the world, the turbulence this year so far has dropped it back close to a three-year low.
Crude had dipped below US$30 per barrel again as Iran was let back into the international fold as sanctions were lifted after its nuclear deal, but the price recovered a little.
“The very real prospect of another leg down for oil towards $20/barrel, prolonging the commodity sector correction, is keeping sentiment in check, said Mike van Dulken, Head of Research at Accendo Markets.
Even so, BP (LON;BP.) was the top riser at 346.5p, up almost 2.4%, while Royal Dutch Shell (LON:RDSB) added 10p to 1,362p.
Other risers today included contract caterer Compass (LON:CPG) up 10p to 1,131p and recent bid chatter favourite Imperial Tobacco (LON:IMT), which gained 1% to 3,558p. Rival BATS (LON:BATS) is mentioned as a possible suitor.
Fallers included Next (LON:NXT) down 1% at 6,670p and there was some profit taking in housebuilding after last week’s.
Profit taking hit JD Sports (LON:JD.) after last week’s strong trading update, while news of a management change at the top lifted Amec Foster Wheeler (LON:AMFW) 4% to 403p.
Samir Brikho is to leave as chief executive after more than nine years in the job.
In the past year, however, the slide in the oil price and subsequent impact on oil company spending has seen the shares halve.
The acquisition by AMEC of Foster Wheeler has also looked ill-timed with hindsight.
Small caps saw some notable movers.
Empyrean Energy (LON:EME) jumped 45% to 7.25p as it pulled off the notable achievement in the current oil environment of selling a small stake in the Eagle Ford shale field in Texas for £50mln.
The cash will pay off debts, other liabilities and leave it debt free to mull acquisitions of more distressed US-based rivals.
AIM-listed Active Energy Group’s (LON:AEG) WoodFibre arm, based in Ukraine, has landed two “significant” supply contracts expected to generate revenues of US$50mln this year. Shares rose 9% to 5.58p.
Fuel cell specialist Ceres Power (LON:CWR) rose 27% to 5.5p after it deepened its relationship with Japanese car powerhouse Honda.
A move in to energy also gave Bushveld Minerals (LON:BMN) a 8% leg-up to 2.96p. The group will look to develop vanadium batteries.
Altona Energy (LON:ANR) fell 21% to 0.55p after a delay of around three weeks in money from Sinoa-Aus, which recently participated in a share subscription.