UK stocks open 0.2% weaker, led down by oil companies

Archived article

Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.

UK stocks opened lower on Wednesday as energy companies were dragged down by recent oil-price weakness.

At 0859, the benchmark FTSE 100 index was down 12.86 points, or 0.2%, at 7.564.34.

BP and Shell fell 1.9% and 0.8%, respectively, while Premier Oil shed 3.2%, even as it boosted first-half production and lowered its cost guidance.

Mining giant BHP gained 0.4%, despite it reporting a 1% fall in fourth-quarter iron ore production owing to a cyclone in Australia.

The fall was nevertheless in line with the company's revised guidance and it also exceeded its guidance for petroleum output.

Fellow miner Fresnillo shed 2.2% as it cut its full-year production guidance on the back of lower-than-expected ore grades and construction delays.

TalkTalk Telecom added 3.8% after the addition of new broadband customers helped it grow headline revenue in the first quarter.

Consumer goods group UP Global Sourcing, which trades as Ultimate Products, jumped 13% as it upgraded its annual profit guidance owing to better-than-expected sales in the second half.

Premier Foods added 1.2% after it reported higher revenue in the first quarter, underpinned by sales of its Ambrosia and Sharwood's brands.

Water utility Severn Trent declined 0.5%, despite announcing that it had made a 'good' start to the new financial year and expected to deliver a full-year result in line with prior guidance.

Internet of Things investor Telit Communications fell 1.5% on guiding for a fall in first-half revenue owing to the sale of its automotive business.