FTSE 100 movers: Energy shares gain on OPEC deal; Capita slumps on warning

London’s FTSE 100 index was up 0.9% to 6,912.59 in afternoon trade.

Energy shares were the standout winners, with Shell and BP racking up strong gains after OPEC ministers agreed a deal to cut production for the first time since 2008.

Nicholas Hyett, equity analyst at Hargreaves Lansdown, said: “OPEC’s decision to cut output provides a breather for oil companies rather than marking a return to the heady days of 2014. For the companies with the lowest costs, $50 oil could be what is needed to put the business on an even keel. For others, it offers more time to make the changes that were already underway. Among the latter group are Shell, where the reduced pressure on the dividend has sent the shares up 5.5%.”

Glencore advanced following a report that Genesee & Wyoming and Macquarie Infrastructure and Real Assets are working on a bid for some of the miner’s coal operations in Australia.

On the downside, Capita tumbled as it warned that full-year profits will be some way short of current forecasts after its third quarter was hit by a slowdown in some areas, one-off costs and recent hesitation among clients.

The business process outsourcing group said revenues would grow 4-5% in the calendar year and that underlying profit before tax would be between £535m and £555m, 5-9% short of last year and 10-13% shy of current City forecasts.

Peer Babcock also took a hit on the back of the news.

Leisure operator Merlin Entertainments was under the cosh after it reported growth in revenue in the year to date but highlighted still-challenging trading.

Housebuilders were also under pressure as the Bank of England revealed UK mortgage approvals fell to 60,058 in August from 60,925 in July - not quite as much as the consensus forecast of 59,800 but down over 17% from the peak of over 73,000 in January. Barratt Developments, Persimmon, Taylor Wimpey and Travis Perkins were all in the red.

Risers

Royal Dutch Shell 'A' (RDSA) 1,910.00p 5.79%
Royal Dutch Shell 'B' (RDSB) 2,005.00p 5.78%
BHP Billiton (BLT) 1,149.00p 4.74%
Anglo American (AAL) 965.80p 4.56%
BP (BP.) 449.85p 4.07%
Sky (SKY) 913.50p 3.51%
Centrica (CNA) 231.60p 3.25%
SSE (SSE) 1,585.00p 2.72%
Glencore (GLEN) 214.75p 2.58%
Rio Tinto (RIO) 2,590.00p 2.55%

Fallers

Capita (CPI) 705.00p -25.98%
Merlin Entertainments (MERL) 440.40p -6.22%
Babcock International Group (BAB) 1,045.00p -3.86%
Barratt Developments (BDEV) 475.20p -3.73%
Persimmon (PSN) 1,752.00p -2.99%
Taylor Wimpey (TW.) 149.70p -2.60%
International Consolidated Airlines Group SA (CDI) (IAG) 394.20p -1.20%
AstraZeneca (AZN) 5,061.00p -1.19%
Travis Perkins (TPK) 1,519.00p -1.17%
Burberry Group (BRBY) 1,373.00p -1.01%