LONDON (ShareCast) - The Footsie is clawing its way back towards last night’s closing level but remains shackled in its efforts by weak oils and miners, which track the decline in commodity prices.

Though the oil price has stabilised today, last night’s fall hits oil stocks such as Cairn Energy and Tullow Oil. Not even a huge rise in second quarter profits can prevent BG Group from hitting the skids. Underlying earnings more than doubled driven by higher prices, E&P volumes and increased LNG margins.

Mining stocks are out of favour, with ENRC the worst affected, as copper, prices ease back.

Kingfisher has usurped London Stock Exchange as best performing blue-chip, after its trading update revealed the decline in like-for-like sales has decelerated in the last ten weeks. The UK market remains tough, the DIY retailer said, but total sales were up 5.1%, boosted by stronger seasonal sales and Screwfix trade counter openings.

London Stock Exchange is the next best performing Footsie stock after Morgan Stanley upgraded the shares from “underweight” to “equal weight”.

Rolls Royce is also on the up. The engine maker saw profits increase slightly in the first half despite increases in costs as service revenues surged ahead.

More steadily, Imperial Tobacco says trading is on track with Davidoff, Gauloises Blondes and JPS key cigarette growth drivers, complemented by robust performances from cigars and fine cut tobacco products.

Vodafone’s share buy-back programme has encouraged Goldman Sachs to recommend the stock as a buy.

Scottish and Southern Energy is marked down after it said first half profits will be “substantially” lower than last year, though it expects to deliver a modest increase in adjusted profit for the year.

Elsewhere, Yell rose sharply even though the troubled Yellow Pages group posted lower first quarter profits and cautioned it expects further pressure on revenue over the rest of the year. It also indicated it would still meet its earnings guidance.

The falling oil price cannot prevent no-frills airline easyJet from a mauling after it said capacity growth for the winter 2008/2009 has been reduced and is currently planned to be in the region of 4%-6%. At Stansted, capacity will be reduced by 12% this winter. British Airways dips in sympathy.

Housebuilders are going well led by Taylor Wimpey on reports it has appointed an adviser to help it renegotiate its loan covenants.

Shares in Alizyme are looking sickly after the drug developer announced disappointing test results for its COLAL-PRED drug.

Colt Telecom is wanted after the telecoms company’s second quarter profit before tax and exceptional items increased by from €8.9m to €16.5m.

Microchip designer ARM reported a fall in second quarter revenues and pre-tax profits, but said it is on track to meet its full-year guidance.

Cadogan Petroleum slumped after discovering that a court in the Ukraine had declared invalid two of its key licences in the country.

Investors in Bardford & Bingley take heart from the mortgage bank successfully completing its first securitisation of the year.

FTSE 100 - Risers
Kingfisher (KGF) 128.90p +10.45%
London Stock Exchange Group (LSE) 876.50p +6.31%
ICAP (IAP) 495.25p +2.64%
Enterprise Inns (ETI) 316.25p +2.18%
Rolls-Royce Group (RR.) 376.25p +2.03%
Shire Ltd (SHP) 795.50p +1.53%
Royal Bank of Scotland Group (RBS) 224.25p +1.36%
Barclays (BARC) 356.50p +1.28%
G4S (GFS) 202.25p +1.12%
British Energy Group (BGY) 693.50p +1.09%

FTSE 100 - Fallers
Tullow Oil (TLW) 719.00p -6.07%
Scottish & Southern Energy (SSE) 1,363.00p -5.67%
BG Group (BG.) 1,082.00p -5.09%
InterContinental Hotels Group (IHG) 702.50p -4.68%
Eurasian Natural Resources (ENRC) 973.50p -4.09%
International Power (IPR) 396.50p -4.00%
British Airways (BAY) 252.75p -3.99%
Drax Group (DRX) 703.50p -3.89%
Cairn Energy (CNE) 2,599.00p -3.85%
Amec (AMEC) 835.50p -3.74%

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