THE oil majors, which represent almost 10 per cent of the FTSE 100 index, saw heavy gains yesterday and drove forward the blue-chip benchmark. Their improvements were mirrored by big rises in the second-line exploration and production stocks.
BP Amoco's jump of 92p to a new closing peak of £10.21 1/2 (€15.35) on turnover of 52 million shares accounted for more than 45 points on the Footsie, half the day's overall move. The spike provided a salutary reminder to the managers of active funds, who have tended to remain underweight in the sector. Shell Transport improved 33 3/4p to 3.96 3/4p (€5.95) contributing another 20 points to the Footsie.
The kick-start to the bounce was was a meeting of the Gulf Co-operation Council ministers in Saudi Arabia late on Wednesday. That was followed by a summit of Opec and non-Opec oil ministers in Amsterdam yesterday. The summit was rumoured to be thrashing out a proposal to cut oil production by 2.3 million barrels a day.
Fund management stocks reacted predictably to the £25-a-share bid for M&G by Prudential. M&G responded with a leap of nearly 40 per cent, or 662 1/2p, to £25.40 (€38,18). Prudential shares closed 16 1/2p off at 797 1/2p (€11.98).
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