LONDON (ShareCast) - Large losses among mining heavyweights and oil majors failed to drag London into the red as Wall Street rallied and weaker oil prices buoyed the travel sector.

News that Hurricane Gustav appears to have done little damage to oil platforms in the Gulf of Mexico sent crude prices down as much as $10 at one stage to $105.46 a barrel. The October contract is currently $6.58 lower in New York.

The prospect of lower fuel costs made British Airways, budget carrier easyJet and cruise operator Carnival more attractive. Travel agents Thomas Cook and TUI Travel were near the top of the pile.

Oil plays Tullow, BG and BP suffered though, while oil services firm John Wood Group was also left nursing losses.

Miners had that sinking feeling as metal prices turned lower. Anglo American, Antofagasta and the Kazakh pair ENRC and Kazakhmys struggled.

Lonmin managed slim gains though as the platinum miners bolstered its defences against Xstrata’s unsolicited £5bn bid approach, but said it is willing to talk with its Swiss-based rival.

Retailers were higher despite a less than complimentary note on the UK fashion sector from JP Morgan. Next was among the risers after JPM maintained its ‘neutral’ recommendation on the stock with a 1,050p target price.

Marks & Spencer is the broker’s least preferred stock in the sector. JPM kept its ‘underweight’ rating and predicts further earnings downgrades in the next quarter, although the price target goes up to 220p from 200p

Among the mid-caps, Persimmon, Taylor Wimpey and Bovis led the housebuilders higher on the government’s proposals for a new shared equity scheme and plans for big social housing schemes.

Newspaper groups Trinity Mirror and Johnston Press, which depend on the housing sector for advertising revenues, also went well.

Brewer and pub owner Greene King says market conditions remain challenging as consumer confidence continues to weaken and consumer expenditure continues to contract, though it expects to meet this year's targets. Retail sales fell by 1.6% like-for-like in the 16 weeks to 24 August, tenancy division profits are down 1.7% while brewing volumes are 3% lower. Belhaven, in Scotland, is doing well, Greene King said. KBC Peel Hunt has kept the company as a ‘hold’.

Recruiter Hays lifted full year profits by 25% to £264m with underlying operating profits up 13%. Strong international growth drove the improvement, offsetting weakness in the UK and Australia where Hays says demand for temporary placements has flattened and permanent placements are struggling.

Plant hire group Ashtead increased underlying first quarter profits by 26% to £35.9m on sales up by 5% to £259.5m.

Gaming VC says that the party that made a preliminary approach in April does not wish to proceed with an offer at this time. Gaming VC added it is continuing to trade in line with market expectations.

Recruitment group Staffline Recruitment said it expects full year performance for 2008 will be marginally below last year.

Lottery and game play product provider GamingKing has returned from suspension after announcing details of a reverse takeover.

Drug developer SkyePharma tumbled as investors digested plans, announced last night, to reorganise its debt, which includes raising a net £18.4m from a placing and open offer at 1.5p a share.


FTSE 100 - Risers
Carnival (CCL) 2,030.00p +7.35%
Thomas Cook Group (TCG) 246.50p +7.29%
Sainsbury (J) (SBRY) 370.00p +6.09%
TUI Travel (TT.) 229.00p +5.90%
Next (NXT) 1,133.00p +5.59%
SABMiller (SAB) 1,246.00p +5.50%
Wolseley (WOS) 485.50p +5.43%
Prudential (PRU) 578.00p +5.00%
London Stock Exchange Group (LSE) 810.50p +4.92%
British Sky Broadcasting Group (BSY) 489.75p +4.87%

FTSE 100 - Fallers
John Wood Group (WG.) 428.50p -5.88%
Tullow Oil (TLW) 750.50p -5.12%
Anglo American (AAL) 2,646.00p -4.82%
Eurasian Natural Resources (ENRC) 928.00p -4.33%
BHP Billiton (BLT) 1,581.00p -4.07%
Xstrata (XTA) 2,804.00p -4.04%
Cairn Energy (CNE) 2,697.00p -4.02%
BG Group (BG.) 1,119.00p -3.95%
Man Group (EMG) 540.50p -3.91%
Rio Tinto (RIO) 4,830.00p -3.59%

FTSE 250 - Risers
Mapeley (MAY) 1,279.00p +12.39%
easyJet (EZJ) 379.25p +10.73%
Trinity Mirror (TNI) 122.00p +10.66%
Inchcape (INCH) 282.50p +10.14%
Persimmon (PSN) 424.25p +10.12%
Ashtead Group (AHT) 85.00p +10.03%
Johnston Press (JPR) 53.25p +9.23%
Greene King (GNK) 581.00p +9.11%
Speedy Hire (SDY) 511.00p +8.90%
Taylor Wimpey (TW.) 60.75p +8.48%

FTSE 250 - Fallers
Premier Oil (PMO) 1,100.00p -9.09%
Dana Petroleum (DNX) 1,349.00p -6.77%
Wellstream Holdings (WSM) 1,140.00p -6.33%
Venture Production (VPC) 737.50p -5.81%
JKX Oil & Gas (JKX) 385.25p -5.58%
Salamander Energy (SMDR) 250.00p -5.21%
Heritage Oil (HOIL) 215.00p -4.87%
Weir Group (WEIR) 887.50p -4.62%
Aquarius Platinum (AQP) 455.00p -4.01%
Hardy Oil & Gas (HDY) 471.75p -3.97%

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