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    September 22, 2005

    FTSE makes cautious gains on Rita downgrade

    Filed under: O2, BG Group, Royal Dutch Shell, BP, Cairn Energy, ITV, Enterprise Inns, GlaxoSmithKline

    In London on Friday the FTSE 100 gained 0.2 percent to 5,397.8, while the FTSE 250 was up by 0.2 percent as well, to 7,853.7.

    The markets were up on advances in the telecommunications sector and on the downgrade of Hurricane Rita to Category 4.

    In the telecommunications sector, O2 gained 2.3 percent to 154¼p on a positive assessment by ratings agency Fitch, while Vodafone rose 1.4 percent to 147p.

    The oil sector declined on the day as damage predictions ahead of Rita were decreased. BG Group fell 1.1 percent to 534½p, Royal Dutch Shell declined 1.2 percent to £19.09, BP lost 1.6 percent to 657½p, and Cairn Energy was down 2 percent to £19.77.

    Elsewhere, ITV gained 1.4 percent to 112¼p as rumors continued that a group led by a former BBC director general was getting ready to bid on the broadcasting company.

    Pub group Enterprise Inns added 1.8 percent to 838p on an announcement that it expects profits to meet expectations and that it will return surplus cash to shareholders through higher dividends and share buybacks.

    In the pharmaceuticals sector, GlaxoSmithKline gained 2.7 percent to £14.16.





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