FTSE 100 fell to 7,546 in early afternoon trade inn Tuesday, as the West placed more sanctions on Russia following the discovery of horrifying evidence of war crimes in Ukraine.
Oil prices gained 1.5% to $109 a barrel on Tuesday as a resolution to the war slips away and leading global exporter Saudi Arabia announced a rise in its oil prices for May.
Saudi Arabian state-owned oil producer Saudi Aramco reportedly raised the price of its Arab Light Crude to $9.35 earlier today.
The only positive impact of the rising oil prices fell on energy stocks such as BP, which gained 0.7% to 379p.
Shell shares lost 0.2% to 2,111p following the announcement of reported payments to the government. The group has paid $58.7b to governments. However, the group collected $46.1b in excise duties, sales taxes and levies on its fuel and other products on behalf of international governments.
Though rising oil prices may be “bad news” for the economy, heavyweights like BP can help “limit the losses for the FTSE 100” according to Russ Mould, Investment Director, AJ Bell.
FTSE 100 Risers
Croda shares rose nearly 4% to 8,055p after the UK government approved a £15.9m grant for the company to expand its manufacturing facility in Leek, Staffordshire.
“This investment will meaningfully enhance our lipid system capability and manufacturing capacity, ensuring that Croda plays a central role in both the development and future supply of this important delivery technology,” said Daniele Piergentili, President of Croda Life Sciences.
Halma shares gained 1.7% to 2,589p after HSBC increased the group’s price target from 2,120p to 2,365p.
Auto Trader shares increased 1.3% to 658p, despite Credit Suisse cutting Auto Trader’s price target from 532p to 514p.
ITV shares rose 0.04% to 82p on rumours of the group acquiring Channel 4 after the UK government said they would privatise the broadcaster that is funded by advertising, but publicly owned.
FTSE 100 Fallers
Kingfisher shares sank nearly 3% to 253p as the DIY consumer goods company’s shares faced the brunt of investor concern that consumers will be prioritising their expenses for essentials with the rise in the cost of living, leaving home improvement projects on the back burner.
Housebuilder stocks saw a fall today with Barratt Development losing 3% and Taylor Wimpey losing 2.8%.
“Housebuilders have been in the doldrums since the start of the year despite a supercharged housing market as investors priced in the cost of making repairs,” said Danni Hewson, a financial analyst at AJ Bell yesterday.
Housebuilders Persimmon shares were down 0.05% to 2,209p despite the firm signing a UK government building safety pledge.
Vodafone shares fell 1.9% to 123p as Berenberg cut the group’s price target to 145p from 150p.
Airtel Africa shares dropped 2.8% to 140p on Tuesday after the company reported that it is unsure about the financial impact of regulatory SIM card measures at its Nigeria telecommunications unit that the group adopted.
Flutter Entertainment shares have been falling for quite some time, and on Tuesday, the shares dropped 1.4% to 8,965p as the UK announced the ban on using celebrities in advertising gambling products to curb its appeal to children under the age of 18.
