FTSE rebounds as oil price rise boosts energy companies - London Report

BRITAIN’S main equity index rebounded from a two-week low yesterday, led by energy shares, as oil prices rose from five-year lows.

Energy stocks helped the FTSE 100 index to close 1.3 per cent higher at 6,742.10 points. It had fallen one per cent in the previous session to a two-week low, its steepest one-day drop in six weeks.

Tullow Oil, up 6.04 per cent to 424.70p, Royal Dutch Shell A, ahead 4.1 per cent at 2,208p, and BG Group, a 3.42 per cent improvement to 935.50p, after crude oil jumped five per cent late in the previous session. Oil fell on yesterday, but held above earlier multi-year lows.

BP rose 4.7 per cent to 433.85p after several traders cited market talk of a takeover bid from Royal Dutch Shell. Royal Dutch Shell and BP declined to comment.

Among other movers, Friends Life rose 2.43 per cent to 375.10p after insurer Aviva agreed terms for a £5.6bn all-share takeover.

Aviva closed the day 0.12 per cent up at 500p.