London open: Crude dip drags Footsie down

10th Jul 2009 08:44

London's blue chips have given back some of yesterday's gains though trading is light after a dull day on Wall St yesterday. Oil-related stocks are the main movers, with light crude futures dipping below $60 per barrel for the first time in weeks. Royal Dutch Shell and BP are weak in sympathy. Oil-focused contractors such as Amec are also lower.On the flip side of the falling oil price, beleaguered British Airways, a beneficiary, is moving up. Merger talks between BA and Iberia are expected to gather new momentum after the ousting of the Spanish flag carrier's chairman, the Times reported this morning. Anglo American has confirmed the appointment of Sir John Parker as chairman from the end of the month succeeding Sir Mark Moody-Stuart who is to retire after seven years as chairman. He is expected to support the miner's rejection of merger approaches from Xstrata and help chief executive Cynthia Carroll in building a strong defence strategy.Bovis has scrapped its interim dividend but said the housing market has shown signs of stabilisation during the first half. Bodycote was downbeat Friday as the engineering firm said half-year revenue fell by a fifth and warned of a marginal operating loss before exceptional items. A weak automotive sector and continuing decline in demand from the oil and gas industry has cut revenue for the six months to 30 June 2009 by 20%, or 31% on a constant currency basis.Aircraft services group BBA Aviation said it has been outperforming the market during the first six months of the year and expects to continue doing so in the second half despite volatile markets. Building maintenance and services group Interserve is trading in line with expectations and ahead of last year's operating performance.Building products supplier SIG saw a 10% fall in sales in the half year to June 30 as it continued to feel the impact of the depressed construction market. In the second half of June sales were stable 'without exhibiting the level of seasonal pickup in activity, which typically manifests itself from late spring onwards,' the firm said.Support and maintenance services supplier Mitie has made a steady start to the year with revenues booked already at 78% of the expected total for the year. This time last year the total booked was 83%.