Cable & Wireless investors were dealt another blow today after a warning on future earnings at the company’s beleaguered UK arm sent shares 10% lower.
But the latest gloom from the telecoms group failed to take the edge off the rest of the London market as the FTSE 100 Index stood 11.5 points higher at 5791.3 in the first hour of business.
Oil groups underpinned the performance with BP and Royal Dutch Shell ahead by more than 1% during a crucial week for the sector.
While both companies will announce record results in the next few days, investors were also cheered by a broker upgrade on BP and the likelihood that oil cartel OPEC will maintain current output levels.
BP stood 8p higher at 690p while Royal Dutch Shell added 32p to 2034p.
Friends Provident led the FTSE with a rise of 2% – up 4p at 192.25p – after investors cheered better-than-expected sales for the fourth quarter.
But most of the focus was on Cable & Wireless, down 10.25p to 104.25p, after it said UK earnings for the next financial year would be static.
It also announced a restructuring and said chief executive Francesco Caio would leave after three years in the job. For Cable investors, today’s share price is a far cry from the 800p achieved in 2001.
References: EGi News 31/01/06
