London close: Stocks finish higher but pare early gains as oil prices jump

(Sharecast News) - London's blue chip index inched higher on Tuesday, though gains were only minor as investors weighed a jump in the price of oil on the back of renewed attacks on vessels in the Strait of Hormuz.

The FTSE 100 finished just 0.1% higher at 10,665.88, paring earlier gains which sent it to a high of 10,747.01 (+0.9%). The index slipped 0.3% on Monday after closing at 10,679.03 on Friday, its highest since early March.

Brent crude was up 2.6% at $73.86 a barrel by the close of play in London after a report that an LNG ship from Qatar was hit as it travelled through the Strait of Hormuz. Separately, another commercial vessel was hit by a projectile near the Omani coast as it exited the Strait, the UK's Maritime Trade Operations agency said.

"Renewed attacks on commercial shipping in the Strait of Hormuz reignited concerns over global energy supplies and cast doubt on the durability of the US-Iran agreement," said Axel Rudolph, chief technical analyst at IG.

Market participants were mulling the latest results from Samsung, whose shares tumbled despite the South Korean chipmaker seeing second-quarter profits surge 1800%.

In a brief pre-earnings update, Samsung said that operating profits in the three months to June-end were estimated to have soared to 89.4trn won (�43.7bn), ahead of estimates and up from 4.7trn won a year previously, while revenues rocketed 129% at 171trn won..

Dan Coatsworth, head of markets at AJ Bell, said: "Although Samsung's results were stellar, investors are getting nervous about the scale of money ploughing into AI and whether it's a bubble waiting to burst."

In other news, the latest Lloyds house price index - formerly the Halifax HPI - showed that British house prices increased 0.2% in June, following a 0.2% softening in May. It was the first increase for four months and slightly ahead of consensus expectations for a 0.1% uplift. The average property price now stands at �299,330.

Shell impresses

Shell rose strongly as the oil giant said trading and optimisation earnings in its integrated gas division are expected to be "significantly" higher in the second quarter as it lifted its production guidance for the segment. Shell also said it expects an improvement in its working capital position due to "unprecedented volatility" in commodity prices.

The company expects Q2 production of 610,000 to 650,000 barrels of oil equivalent per day in its integrated gas arm, down from 909,000 boed in the first quarter due to the impact of the Middle East conflict on Qatari volumes but comfortably above earlier guidance.

Heavily-weighted miners Anglo American and Antofagasta were under the cosh, along with precious metals miner Fresnillo, as gold prices fell.

Halma retreated after announcing the acquisition of France-based Dreampath Diagnostics for an initial �154m (�132m), on a cash- and debt-free basis.

On the FTSE 250, geotechnical contractor Keller surged after issuing a strongerthanexpected trading update that prompted a material upgrade to fullyear guidance.

Polymer specialist Victrex also traded higher, helped by a strong thirdquarter update showing a sharp rebound in volumes and revenue across key end markets.

Market Movers

FTSE 100 (UKX) 10,665.88 0.13%

FTSE 250 (MCX) 23,378.82 -0.53%

techMARK (TASX) 5,991.91 -0.58%

FTSE 100 - Risers

Associated British Foods (ABF) 1,970.00p 3.77%

Diageo (DGE) 1,564.50p 3.71%

Shell (SHEL) 3,011.00p 3.38%

Babcock International Group (BAB) 1,079.00p 2.96%

Unilever (ULVR) 4,689.00p 2.90%

Relx plc (REL) 2,461.00p 2.84%

British Land Company (BLND) 425.20p 2.61%

London Stock Exchange Group (LSEG) 9,034.00p 2.54%

Compass Group 11 (CPG) 32.50p 2.49%

Pearson (PSON) 1,268.00p 2.38%

FTSE 100 - Fallers

Airtel Africa (AAF) 324.00p -5.26%

Halma (HLMA) 3,730.00p -4.51%

Anglo American (AAL) 3,610.00p -4.45%

Diploma (DPLM) 6,785.00p -4.03%

Fresnillo (FRES) 2,723.00p -4.02%

Rolls-Royce Holdings (RR.) 1,447.80p -3.74%

Abrdn (ABDN) 252.40p -3.59%

Computacenter (CCC) 4,244.00p -3.50%

Antofagasta (ANTO) 3,768.00p -3.34%

Weir Group (WEIR) 2,418.00p -3.12%

FTSE 250 - Risers

Keller Group (KLR) 3,286.00p 22.52%

Victrex plc (VCT) 677.00p 16.52%

Hikma Pharmaceuticals (HIK) 1,661.00p 7.58%

Telecom Plus (TEP) 808.00p 5.35%

NCC Group (NCC) 137.00p 5.06%

WPP (WPP) 267.80p 4.36%

Mitchells & Butlers (MAB) 261.50p 3.56%

Mony Group (MONY) 195.70p 3.38%

Hays (HAS) 36.26p 3.19%

Wetherspoon (J.D.) (JDW) 726.00p 2.83%

FTSE 250 - Fallers

Genus (GNS) 2,060.00p -8.36%

ITV (ITV) 75.85p -7.27%

XP Power Ltd. (DI) (XPP) 1,790.00p -7.25%

Oxford Nanopore Technologies (ONT) 120.10p -4.53%

Aston Martin Lagonda Global Holdings (AML) 37.30p -4.36%

Ocado Group (OCDO) 175.60p -4.36%

Seraphim Space Investment Trust (SSIT) 191.40p -4.30%

THG (THG) 30.02p -4.27%

Fidelity Emerging Markets Limited Ptg NPV (FEML) 1,482.00p -4.26%

Balfour Beatty (BBY) 851.50p -4.16%