London close: FTSE 100 rises as investors celebrate Iran deal

25th Nov 2013 16:40

- Global indices continue to set new highs- P5+1 strikes deal with Iran over nuclear programme- Travel stocks rise, oil stocks falltechMARK 2,651.39 +0.35%FTSE 100 6,694.62 +0.30%FTSE 250 15,299.92 +0.74%UK financial markets on Monday celebrated the deal to limit Iran's nuclear activity with sentiment lifted as indices across the globe continued to set record highs.Germany's DAX 30 index closed at another all-time high, while the S&P 500 and Dow Jones in the US were both extending their recent records. The FTSE 100 finished 20.32 points higher at 6,693.62 a rise of 0.3% on the day.Travel stocks were performing particularly well in London as a fall in oil prices brightened the cost outlook for companies. "The prospect of lower oil prices is always going to be received in a positive fashion given the positive effects they have on the cost base of not only businesses, but also consumers, who will inevitably find that they have more money available for other discretionary spending," said Michael Hewson, Chief Market Analyst at CMC Markets.Iran to limit nuclear programmeIran and the so-called P5+1 nations of Russia, China, France, Germany, the UK and the US came to an interim agreement over the weekend limiting Iran's nuclear programme in exchange for the easing of economic sanctions. The deal will run for the next six months as both sides work on a final agreement. Iran is home to the world's fourth-largest oil reserves but its exports have been affected by tough sanctions. The nation will not be allowed to increase its oil sales for six months but the deal has relieved tensions in the oil producing region of the Middle East.Brent crude futures for January delivery were down 1.18% at $109.74 a barrel before the close of trade, after having dropped 3% earlier on in the session.Analyst Jens Nærvig Pederson from Dankse Bank said: "As Iran is not allowed to increase its oil exports, the effect [on oil prices today] probably reflects relief in the market that the sides are finally moving closer together and an expectation that the momentum will continue to grow."Travel stocks rise, oil stocks slipTravel stocks such as easyJet, IAG, Carnival, TUI Travel and Thomas Cook were making gains on Monday as the price of oil fell following the Iran deal. Jefferies raised its rating for easyJet from 'hold' to 'buy', saying that after a pause for breath over the summer, "we are now increasingly confident of a return to share-price outperformance". The broker also lifted its target price for the stock, along with IAG.Petrofac, the oil and gas services provider, rose strongly after saying that its 50/50 joint venture with Korean based Daelim Industrial has been awarded a $2.1bn engineering, procurement and construction contract by Oman Oil Refineries and Petroleum Industries. Oil peers Shell, Tullow and BG Group were also out of favour as crude prices weakened significantly. BP was lower after the US judge overseeing the entire civil liability trial arising from the Gulf of Mexico oil spill criticised the company's "deeply disappointing" attempt to block what it sees as excessive compensation payments.Similarly, gold producers Randgold Resources, Centamin, Hochschild Mining and African Barrick Gold were in the red with the price of the precious metal slipped.Engineering services giant Babcock fell after revealing that it is in discussions about setting up a "joint venture" with helicopter firm Avincis, which press reports have suggested could include a partial or even full buy-out. Numis and Panmure Gordon were weighing on the shares after both downgraded their recommendations from 'buy' to 'hold'.Defence group Chemring surged after saying that expectations for the financial year ended October 31st remain in line with previous guidance despite the adverse market backdrop.Power plant operating and oil group Essar Energy sank after seeing first-half core profits fall 7% to $543.7m due to a weak Indian rupee.Meanwhile, pork producer Cranswick gained after beating forecasts with its interim results as first-half pre-tax profits rose 16% to £26.1m.FTSE 100 - RisersInternational Consolidated Airlines Group SA (CDI) (IAG) 372.80p +2.76%Aberdeen Asset Management (ADN) 486.10p +2.25%easyJet (EZJ) 1,434.00p +2.06%Carnival (CCL) 2,272.00p +1.97%Reckitt Benckiser Group (RB.) 4,939.00p +1.90%Compass Group (CPG) 927.00p +1.87%William Hill (WMH) 375.00p +1.87%Kingfisher (KGF) 390.90p +1.80%Schroders (SDR) 2,485.00p +1.80%Sports Direct International (SPD) 705.50p +1.80%FTSE 100 - FallersRandgold Resources Ltd. (RRS) 4,215.00p -3.37%Babcock International Group (BAB) 1,284.00p -3.09%Severn Trent (SVT) 1,785.00p -1.49%Tullow Oil (TLW) 874.50p -1.41%WPP (WPP) 1,355.00p -1.17%Rio Tinto (RIO) 3,164.00p -0.94%Vedanta Resources (VED) 887.00p -0.89%BP (BP.) 490.10p -0.68%Anglo American (AAL) 1,371.50p -0.62%G4S (GFS) 262.00p -0.61%FTSE 250 - RisersIP Group (IPO) 180.00p +13.78%Chemring Group (CHG) 213.00p +9.57%Perform Group (PER) 462.00p +8.71%Cranswick (CWK) 1,166.00p +6.00%Dunelm Group (DNLM) 880.50p +5.83%RPS Group (RPS) 295.50p +4.86%Supergroup (SGP) 1,165.00p +4.77%Alent (ALNT) 335.20p +4.00%UDG Healthcare Public Limited Company (UDG) 305.00p +3.74%Oxford Instruments (OXIG) 1,471.00p +3.66%FTSE 250 - FallersEssar Energy (ESSR) 87.35p -13.17%Centamin (DI) (CEY) 43.70p -7.63%African Barrick Gold (ABG) 164.40p -4.31%Moneysupermarket.com Group (MONY) 173.00p -2.54%Polymetal International (POLY) 511.00p -2.48%Hochschild Mining (HOC) 126.50p -2.32%Kenmare Resources (KMR) 18.45p -2.12%NMC Health (NMC) 390.00p -1.76%Premier Oil (PMO) 313.00p -1.73%Greencore Group (GNC) 183.80p -1.71%BC