Oil stocks drive FTSE to new record high, eighth session of straight gains
Reuters
Published May 15, 2017 17:01
Oil stocks drive FTSE to new record high, eighth session of straight gains
By Helen Reid and Kit Rees
LONDON (Reuters) - Britain's main share index climbed to a new record high on Monday, fuelled by oil and mining stocks, and cybersecurity firm Sophos (L:SOPH) jumped after a ransomware attack hit companies, hospitals and schools worldwide.
The FTSE 100 (FTSE) was up 0.3 percent at 7,454.37 points at its close, having hit a fresh high of 7,460.20 points at the open. The blue chip index sealed its 8th session of straight gains - its longest winning streak since the start of January.
Mid-cap cybersecurity services firm Sophos (L:SOPH) soared 7.3 percent, touching a new record high, after a global ransomware attack hit companies, hospitals and schools.
"Sophos have a really strong position in the small and medium business sector, and ransomware often targets them as they tend to have the least sophisticated systems in place," said Neil Campling, technology analyst at Northern Trust.
"With a world that's more digital, these attacks become more sophisticated and more prevalent."
Small-cap security firm NCC Group (L:NCCG) also rose 2.7 percent.
Oil majors BP (L:BP) and Royal Dutch Shell (L:RDSa) gained in concert with European peers as crude prices rose above $52 a barrel after Russia and Saudi Arabia said supply cuts needed to last into 2018.
Miners Anglo American (L:AAL), Glencore (L:GLEN), BHP Billiton (L:BLT) and Antofagasta (L:ANTO) were the top boosts to the index, up 2.3 to 3.2 percent.
Europe's largest tour operator TUI Group (L:TUIT) fell as much as 5 percent after it said "challenging" conditions had driven it to a wider loss in its second quarter.
The company maintained full-year targets, however, saying that travel to Spain, Greece and the Caribbean was offsetting a slowdown in Turkey and North Africa. TUI's summer trading was in line with expectations.
"The targeted 10 percent-plus annual underlying earnings growth looks assured, but we worry about the increasing capital intensity required to generate said growth," said Panmure Gordon analyst Mark Irvine-Fortescue.
Mid-cap crematorium operator Dignity (L:DTY) jumped as much as 9.9 percent, though pared earlier gains to end 2.3 percent higher after a positive trading update.
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The small caps index (FTSC) also scaled a fresh record high, up 0.1 percent with semiconductor maker Nanoco Group (L:NANON) among the top gainers, up 4.2 percent.
Miner Lonmin (L:LMI) meanwhile fell 7.4 percent after reporting an operating loss for its first-half, hurt by higher costs and lower production.
Written By: Reuters
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