UK energy stocks, including BP Plc and Shell Transport & Trading Co, climbed after oil reached a new high as worsening violence in Iraq threatened to disrupt supplies.
WPP Group Plc, the world's second-largest advertising and marketing company, declined after saying "concerns remain" about economic growth in the US next year.
The benchmark FTSE 100 added 6.60, or 0.2 percent, to 4,369.20 in London. The index rose 1.6 percent since last Friday, and posted its first weekly gain in three. The FTSE All-Share Index rose 2.83, or 0.1 percent, to 2,169.76.
"What's there not to like about oil stocks?" asked Richard Lewis, who oversees US$1 billion in European stocks at New Star Asset Management. "We like oil stocks. There are earnings upgrades coming through."
Crude-oil futures surpassed US$49 a barrel on the New York Mercantile Exchange, on concern that fighting between US forces and followers of Shiite Muslim cleric Moqtada al-Sadr will cut shipments.
BP, Europe's biggest oil company, advanced 2.5 pence, or 0.5 percent, to 489.5
Shell, which owns 40 percent of Royal Dutch/Shell, added 5 pence, or 1.3 percent, to 401. It also benefited from a broker upgrade after Merrill Lynch & Co advised investors to buy the stock, citing the possibility of future asset sales and planned investments.
WPP, dropped 6.5 pence, or 1.3 percent, to 488 after Chief Executive Officer Martin Sorrell said "concerns remain" about prospects for the US economy after November's presidential elections. WPP got about 40 percent of its revenue from the US last year.
"WPP's outlook on consumer spending for 2005 is a bit disappointing," said Grahame Exton, part of a team managing the equivalent of about US$921 million at Tilney Investment Management in Liverpool, England.
The company earlier said first-half profit rose 11 percent, boosted by demand in the US and Asia.
"There's a hint of caution when you trawl through WPP's earnings statement," said Exton.
The following stocks made significant gains or losses in London. Symbols are in parentheses after the company name.
British Airways Plc, Europe's second-largest airline, slipped 1.5 pence, or 0.7 percent, to 212.25. The airline today resumed pay talks with unions as the carrier tries to avert strikes by 11,000 baggage handlers and check-in staff next week.
CMS WebView Plc, a real-time financial information provider, jumped 0.75 pence, or 12 percent, to 7. The company said the Chicago Board of Trade, the world's biggest market for Treasury futures, will extend a data agreement.
The Chicago exchange will use CMS's TDI software to distribute market data from the Kansas City Board of Trade and the Minneapolis Grain Exchange, the company said.
FirstGroup Plc, the UK's second-largest bus and train company, added 2.5 pence, or 0.9 percent, to 297.25 after it signed a seven-year contract to run the Scottish Passenger Rail franchise.
HORMUZ ISSUE: The US president said he expected crude prices to drop at the end of the war, which he called a ‘minor excursion’ that could continue ‘for a little while’ The United Arab Emirates (UAE) and Kuwait started reducing oil production, as the near-closure of the crucial Strait of Hormuz ripples through energy markets and affects global supply. Abu Dhabi National Oil Co (ADNOC) is “managing offshore production levels to address storage requirements,” the company said in a statement, without giving details. Kuwait Petroleum Corp said it was lowering production at its oil fields and refineries after “Iranian threats against safe passage of ships through the Strait of Hormuz.” The war in the Middle East has all but closed Hormuz, the narrow waterway linking the Persian Gulf to the open seas,
Apple Inc increased iPhone production in India by about 53 percent last year and now makes a quarter of its marquee devices there, reflecting the US company’s efforts to avoid tariffs on China. The company assembled about 55 million iPhones in India last year, up from 36 million a year earlier, people familiar with the matter said, asking not to be named because the numbers aren’t public. Apple makes about 220 million to 230 million iPhones a year globally, with India’s share of the total increasing rapidly. Apple has accelerated its expansion in the world’s most populous country in recent years, bolstered
HEADWINDS: The company said it expects its computer business, as well as consumer electronics and communications segments to see revenue declines due to seasonality Pegatron Corp (和碩) yesterday said it aims to grow its artificial intelligence (AI) server revenue more than 10-fold this year from last year, driven by orders from neocloud solutions clients and large cloud service providers. The electronics manufacturing service provider said AI server revenue growth would be driven primarily by the Nvidia Corp GB300 server platform. Server shipments are expected to increase each quarter this year, with the second half likely to outperform the first half, it said. The AI server market is expected to broaden this year as more inference applications emerge, which would drive demand for system-on-chip, application-specific integrated circuits
PROJECTION: TSMC said it expects strong growth this year, with revenue in US dollars projected to grow by about 30 percent, outperforming the industry Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday reported consolidated sales last month reached NT$317.66 billion (US$9.98 billion), the highest ever for the month of February, driven by robust demand for chips built using the company’s advanced 3-nanometer (3nm) process. Last month’s figure was up 22.2 percent from a year earlier, but fell 20.8 percent from January, the world’s largest contract chipmaker said in a statement. For the first two months of the year, TSMC posted cumulative sales of NT$718.91 billion, up 29.9 percent from a year earlier. Analysts attributed the growth to sustained global demand for artificial intelligence (AI) products
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