FT.com: London climbs as Shell reiterates targets: “Back in London, shares in Shell were 1.1 per cent higher at 481p after the Anglo Dutch oil giant reiterated its target to replace 100 per cent of the oil it intends to pump between 2004 and 2008 with proven reserves of fresh supplies.” (ShellNews.net) 31 March 05

By Michael Hunter, FT.com, Mar 31 2005 7:16

London equities markets opened well within positive territory on Thursday after US stocks made firm gains overnight in New York, posting their firmest one-day advance in almost four months as falling oil prices lifted investor sentiment.

The FTSE 100 started the session 0.6 per cent higher at 4,928.6 and the mid-cap FTSE 250 was 0.5 per cent stronger at 7,117.9.

Overnight in New York, the Dow Jones Industrial Average was 1.3 per cent higher at 10,540.85 by the closing bell, while the S&P 500 index gained 1.4 per cent up at 1,181.47. The Nasdaq Composite index put on 1.6 per cent to 2,005.67. Further support to the advance came from quarter-end buying by fund managers window-dressing their portfolios before starting the second quarter.

Back in London, shares in Shell were 1.1 per cent higher at 481p after the Anglo Dutch oil giant reiterated its target to replace 100 per cent of the oil it intends to pump between 2004 and 2008 with proven reserves of fresh supplies.

Dana Petroleum traded 4.5 per cent higher at 558.5p after it said it had already discovered new supplies of oil close to the Hudson field in the northern North Sea. The exploration and development concern also reported a 27 per cent increase in full-year turnover of £109.5m and operating profit of £48.8m, up 43 per cent

Compass Group was 3.4 per cent lower after it said changes in the "volume and mix" of its operation in the Middle East could reduce full-year profits by £15m. More lucrative military catering contracts in the region were replaced by "peacekeeping activity" franchises, pressuring its bottom line. The world's biggest contract caterer, which serves meals for clients as diverse as primary schools and the Pentagon, said it expected to report overall sales growth in the first half sales of about 6 per cent.

Wolverhampton & Dudley Breweries, the Midlands-based pub operator and maker of Banks's Original Bitter, made gains of 1.5 per cent to £10.94 after it reported first half like-for-like sales growth of 3.1 per cent within its Pathfinder pub chain. It also said trading remained in line with its expectations and was "satisfactory" over the Easter public holiday.

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