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FTSE 100 watch: Footsie steady as oil price rises

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The UK benchmark index has been little changed in today’s session, with a rise in resource stocks helping offset a fall in London-listed housebuilders. Barratt Developments (LON:BDEV) has been among today’s most notable FTSE 100 fallers after updating investors on its full-year performance.

As of 12:37 BST, the Footsie had added 5.51 points to stand 0.08 percent higher at 6,831.56. The blue-chip index has found support in stronger oil, which has fuelled demand for shares in Royal Dutch Shell (LON:RDSA) and BP (LON:BP). BP’s share price has added 1.08 percent to 432.25p so far today, while shares in Shell are changing hands 1.64 percent higher at 1,892.50p.
Precious metals miners Randgold Resources (LON:RRS) and Fresnillo (LON:FRES) meanwhile have gained ground with expectations that the US Federal Reserve would keep rates on hold this month propping up the gold price. Fresnillo’s share price has added 0.94 percent to 1,710.00p, while shares in Randgold are 1.45 percent better off at 7,720.00p.
At the other end of the spectrum have been London-listed housebuilders, whose shares have been sold off even as Barratt posted a rise in full-year revenue and profits.
“We still believe that it is dangerous to assume there is absolutely no risk from Brexit and to restore valuations bases,” Robin Hardy, analyst at Shore Capital Markets, said in a note, as quoted by Reuters. “We do not see Barratt being as financially robust as a number of its peers and while there is scope for a sustained level of dividends to be paid, Barratt has a shorter land bank and more land creditors to fund and with still high demands on free cash from working capital.” Barratt’s share price has lost 2.16 percent to 496.06p.
**The FTSE 100 was 0.07 percent up at 6,830.75 points as of 12:48 BST on Wednesday, September 7, 2016.**

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