FTSE 100 watch: Footsie turns positive as oil price firms

on May 12, 2016
Updated: Mar 11, 2020

The UK benchmark index has climbed into positive territory, having traded lower earlier in the session, finding support in higher oil prices, and after the Bank of England (BoE) kept rates unchanged in line with expectations. Antofagasta (LON:ANTO) meanwhile has fallen deep into the red after analysts at Canaccord Genuity slashed their earnings forecasts for the copper miner.

As of 12:43 BST, the Footsie had gained 24.83 points to stand 0.40 percent higher at 6,187.32, having traded about 0.6 percent lower earlier in the session. Stronger oil prices have lent support to energy stocks with both Royal Dutch Shell (LON:RDSA) and BP (LON:BP) outperforming the broader market. BP’s share price is 1.69 percent better off at 367.30p, while shares in Shell are changing hands 1.61 percent higher at 1,762.50p.

Antofagasta’s share price meanwhile has fallen 2.02 percent to 417.10p as Canaccord Genuity cut its full-year earnings forecast for the miner, arguing that the group’s first quarter production for copper, gold and molybdenum were below its estimates.
“First quarter cash costs also disappointed, and we have adjusted both our production and cost profile accordingly,” analysts Nick Hatch and Tim Huff were quoted as saying.
ITV (LON:ITV) has been another prominent Footsie faller after flagging flat half-year revenue amid uncertainty ahead of the EU referendum next month, which is weighing on ad sales. The shares are 1.72 percent worse off at 211.70p.
In other news, the BoE voted to keep the bank rate unchanged at 0.5 percent, in line with expectations. The bank, however, stepped up its warnings about the economic risks if the UK votes to leave the EU, noting that sterling was “likely to depreciate further, perhaps sharply”.
**The FTSE 100 was 0.44 percent up at 6,189.74 points as of 12:59 BST on Thursday, May 12, 2016.**