FTSE closes at 6304.3

Last Modified: 16 May 2008
Source: ITN

Record profits from British Airways helped the FTSE 100 index finish 52.5 points up at 6304.3.

Despite spiralling oil costs and the botched opening of Heathrow's Terminal 5, the company's stock rose 4 per cent, prompting the first shareholder payout since 2001.

The news cheered investors across the London market although big gains early in Friday's session were tempered by losses in US markets.

Wall Street traders were unsettled after oil reached a new peak of almost $128 a barrel.

The airline was surpassed by British Energy, which gained more than 5 per cent after it revealed it had received a range of bids from several parties.

Thomas Cook and TUI Travel also shared in BA's recovery, with the travel firms ahead 7.5p at 263.25p and 4.75p at 253.75p respectively despite the high oil prices.

Retailers were also on stronger ground, with Next adding 46p to 1285p, and Argos owner Home Retail Group 8.25p up at 260.5p.

Marks & Spencer, which is due to publish results on Tuesday, lifted 13.25p to 415p, a rise of more than 3 per cent.

Engine maker Rolls-Royce fell after it was reported that Airbus was developing a biofuel that could power a third of the world's aircraft by 2030.

And Sainsbury's fell 4.75p to 372.76p analysts downgraded the supermarket in the wake of its results earlier this week.

Winners: British Energy up 35.5p at 715.5p, London Stock Exchange ahead 55p at 1143p, British Airways up 9p at 233p and Icap up 24p at 659p.

Losers: Royal Bank of Scotland down 9.5p at 266.5p, Rolls-Royce down 10.75p at 439.25p, Tate & Lyle off 7p at 499p and FirstGroup down 7.5p at 546.5p.

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