London’s leading shares index managed to hold its head above water today despite heavy losses for the banking sector amid ongoing fears over the eurozone.
Investors dumped financial stocks as borrowing costs in Spain moved past 6% and closer to the unsustainable levels that forced Greece, Portugal and Ireland to seek an EU bailout.
The FTSE 100 Index closed 14.5 points higher at 5,666.3 after positive retail sales figures in the US boosted sentiment.
The concerns over Spain hit banking stocks – Lloyds Banking Group was down nearly 4% or 1p at 29.7p, Royal Bank of Scotland fell 0.8p to 24.3p and Barclays dropped 4.1p to 210.8p.
The wider index was held afloat by a strong show from the utility sector however, which was boosted by the valuation placed on International Power after its directors agreed a £6.4billion deal for GDF Suez to buy the 30% of the business it does not already own. The group was 3% or 12.9p higher at 416.8p.
The buyout price gave a lift to other power firms, with SSE up 18p at £13.58 and Centrica 5.1p higher at 318.8p.
Outside the top flight, Cairn Energy was the leading stock after a business it is in the process of acquiring announced a significant oil discovery in Norway. Agora Oil and Gas has a 20% stake in Skarfjell, which could have up to 160million barrels of recoverable oil, leading shares in Cairn to rise 2% or 7p to 327p.
The biggest Footsie risers included Croda International ahead 58p at £21.90, GKN up 4.5p at 203.7p and Polymetal International ahead 18p at 985.5p.
The biggest Footsie faller was Man Group, down 4.9p at 105.1p.
Stuart Lamont, of investment manager and financial planning specialist Brewin Dolphin in Aberdeen, noted Aberdeen Asset Management advanced 1.9% to 268.8p and Nautical Petroleum was 1.4% higher at 324.4p.
The day’s fallers included Premier Oil, which gave up 2% to close at 376.9p.