Oil prices rose after BP paused shipments through the Red Sea as a rebel group ramped up attacks on vessels in the region.
Global freight firms have scrambled to reroute their ships in response to Yemen’s Houthi militants, who have wreaked havoc for weeks in a series of retaliatory attacks due to Israel’s war against Hamas.
In its latest act of aggression, the group launched a drone strike on a cargo vessel in the Red Sea off Yemen.
As a result, BP has temporarily stopped all shipments of oil through the region. The decision sent oil up almost 3 per cent towards $80 a barrel amid fears over a disruption to supplies.
That in turn pushed BP shares up 1.6 per cent, or 7.35p, to 465.2p and Shell rising 1.4 per cent, or 34p, to 2537p.
Shipping crisis: A Houthi military helicopter flies over a cargo ship in the Red Sea in November. Freight firms have scrambled to reroute their ships in response to the attacks
The FTSE 100 rose 0.50 per cent, or 38.12 points, to 7614.48 and the FTSE 250 edged up 0.08 per cent, or 11.58 points, to 19,220.55.
Shares in Entain rose as speculation over the Ladbrokes and Coral owner’s status as a possible takeover target gathered pace.
The FTSE 100 gambling giant set up a joint business, BetMGM, with the casino operator MGM in July 2018.
Entain then rejected a full-blown £8billion takeover swoop – worth 1383p a share – in January 2021 from MGM, which also ruled out making a second takeover bid in February.
Investment bank Jefferies upgraded its rating on the stock, sending shares up 4.1 per cent, or 38.6p, to 977.2p as it pointed towards Entain’s management change and impact of a new activist investor.
Last week the bookie’s boss Jette Nygaard-Andersen stepped down following mounting pressure from investors.
A day after she quit, activist investor Corvex disclosed a 4.4 per cent stake in Entain and called for further management changes to improve its ‘unacceptable’ performance.
Stock Watch – RBG
Shares in RBG hit a record low after a profit warning.
The AIM-listed professional services company, which owns two law firms and a corporate finance advisory business, expects to make £42million in revenue and £4million in profit this year.
But this is below market forecasts after the firm was affected by a slowdown in activity in commercial real estate and equity capital markets with deals either delayed or scrapped.
Shares tumbled 30.9 per cent, or 5.1p, to 11.4p.
Mexican miner Fresnillo weighed on London’s top index after Morgan Stanley downgraded its rating to ‘underweight’ from ‘equal-weight’ and cut the target price to 540p from 620p.
Shares tumbled 5.2 per cent, or 30.6p, to 555p.
There was better news for Anglo American following a bullish note from Barclays, which said it disagrees with the view that the mining giant is ‘no longer a growth stock’.
Analysts at the bank said the company could grow more than BHP (up 1 per cent, or 27p, to 2611p), Glencore (up 0.4 per cent, or 1.8p, to 462.65p) and Rio Tinto (up 1.2 per cent, or 67p, to 5765p) over the next four to five years.
Still, the shares inched down 0.1 per cent, or 2.6p, to 1821.4p.
It will provide some respite for Anglo, which earlier this month suffered its worst day on the London stock market since October 2008 after it outlined plans to cut production.
Pharma giant GSK received a shot in the arm after a key trial showed a combination of two of its drugs boosted survival chances in cancer patients.
The group rose 1.7 per cent, or 23.4p, to 1442.6p after reporting that a phase III clinical trial found that its Jemperli treatment when used alongside its other drug Zejula ‘significantly improved’ survival in patients suffering from endometrial cancer when compared to chemotherapy alone.
BAE Systems, Britain’s biggest defence group, added 1 per cent, or 10.5p, to 1068.5p after it signed a deal to help repair and maintain Ukrainian artillery.
It was also a positive day for Hollywood Bowl. Revenues at the ten-pin bowling operator hit a record high for the year to September 30 as rainy weather during the summer saw families opt for indoor activities.
Shares rose yesterday 4.6 per cent, or 13p, to 295.5p.
