MW: Oil firms lead FTSE 100 higher, Whitbread rallies
By Sara Sjolin, MarketWatch
LONDON (MarketWatch) — U.K.’s benchmark stock index was on track for a fifth straight day of gains on Tuesday, as energy firms moved higher on the back of higher oil prices.
The FTSE 100 index UK:UKX +0.11% gained 0.3% to 5,936.43.
Shares of Whitbread PLC UK:WTB +3.21% jumped the most in the index, up 3.5%, after the hotel and restaurant group said total sales for the 13 weeks to Nov. 29 rose 14.4%. See: Whitbread comp sales up 3.3%, FY to meet views
Shares of peer firm Compass Group PLC UK:CPG +0.61% added 0.8%.
Shares of HSBC Holdings UK:HSBA +0.36% HBC -0.27% HK:5 +0.31% rose 0.4%, after the bank said it had reached an agreement with U.S. authorities to pay $1.9 billion to settle a money-laundering investigation. See: HSBC reaches $1.92 billion settlement with U.S.
Also on the rise in London, shares of Polymetal International PLC UK:POLY +2.76% gained 1.6%, after the miner said it would buy Ovoca Gold PLC UK:OVG +29.47% for 775,0000 ordinary shares of Polymetal.
Other mining firms were also on the rise, with shares of BHP Billiton PLC UK:BLT +1.56% BHP +1.25% AU:BHP +1.32% up 1.3% and Rio Tinto PLC UK:RIO +0.31% ( RIO +1.20% AU:RIO +0.77% rising 0.3%. Most metals prices were, however, on the decline. See: Gold futures decline ahead of Fed
Oil prices, on the other hand, climbed, providing support for U.K. oil firms. See: Oil moves higher ahead of OPEC, Fed meetings
Shares of Royal Dutch Shell PLC UK:RDSB +0.41% RDS.B +0.71% added 0.3%, while BP PLC UK:BP -0.11% , BP -0.19% climbed 0.7%.
Shares of Tullow Oil PLC UK:TLW -6.37% slumped 5.7%, after a disappointing update regarding an exploration well. In addition, the company announced it will buy Spring Energy Norway AS for $372.3 million and said it will begin to dispose of its exploration, development and production assets in the U.K. and Dutch Southern North Sea gas basin.
Among other notable decliners in London, shares of Diageo PLC UK:DGE -1.30% DEO +0.56% slid 1.3%. The drinks maker said it would terminate its current distribution agreement for the Cuervo brand at the end of June 2013. See: Diageo to end distribution deal for Cuervo brand
Sara Sjolin is a MarketWatch reporter based in London. Follow her on Twitter @sarasjolin.
