LONDON’S blue-chip index climbed back above the 7,300 mark on Wednesday as
rising oil prices helped to push up commodity stocks.
The FTSE 100 finished the day 39.82 points, or 0.55 per cent, higher at
7,313.4.
A barrel of Brent Crude was at one point trading above $80 on the back of
investor fears that Donald Trump’s Iran sanctions could hurt production
levels. Hurricane Florence’s approach towards the US also contributed for
high demand for oil.
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Energy giant SSE trailed after warning half-year profits will tumble 50%
due to the effects of higher gas prices and dry, still and warm weather.
Shares fell by 103p to 1,151p.
George Salmon, equity analyst at Hargreaves Lansdown, said: “Investors
should remember that SSE can’t control any of these factors, and a business
increasingly focused on renewable energy will have good years and bad.
“With that longer-term outlook in mind, the board says it intends to stick
to pre-existing dividend plans.”
“Pledging to make good its promise on the dividend will sugar the pill of
another profit warning, but with earnings falling and investment
requirements stretching well into the billions, SSE can ill-afford more
slip ups.”
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