Crude oil prices showed signs of stabilising yesterday but there was no stopping oil shares, which continued to celebrate the prospect of another cut in output by OPEC, its third in seven months.
There is yet no suggestion that brokers have begun to fluff up third-quarter earnings estimates. However, the latest OPEC cut due in September will ease the more immediate commodity price pressure on the sector.
Total Fina added 3.5 per cent at #158 and Royal Dutch 3.1 per cent at #65.01. Eni put on 1.1 per cent at #13.65.
Alcatel broke back above #18 in early trading as second-quarter figures from the telecommunications equipment group sparked a relief rally. The stock, hit by grim results statements from sector rivals, has halved in value since mid-May.
The shares ended up 4.7 per cent at #17.70 in a busy trade, after touching a low of #17.15.
Epcos failed, like so many of its peers, to lift spirits in the technology sector. The passive electronics components manufacturer slid 3.8 per cent to #48.85 as it reported a sharp drop in third-quarter earnings and weak new orders. The figures proved in line with the revised forecast that the company issued this month.
Hypo-Vereinsbank was higher in spite of a 56.9 per cent rise in second-quarter pre-tax profit. Analysts said the weak figures came as little surprise and attributed the share price rise to short covering and a recovery from recent lows. Hypo closed 0.9 per cent higher at #48.50.
Insurer Allianz, meanwhile, put on 2.4 per cent to #315.70 amid market speculation that it was considering integrating Dresdner Kleinwort Wasserstein (DrKW) into the insurance group, but it had yet to finalise plans and a spin-off remained a possibility.
