By Carla Mozee, MarketWatch
LONDON (MarketWatch) -- U.K. stocks advanced Monday, with energy
shares including Tullow Oil PLC pushing the benchmark FTSE 100
higher in the first day of February trade.
The U.K.'s FTSE 100 rose 0.5% to 6,782.55. The index last week
finished January with a 2.8% advance, the best monthly gain since
February 2014.
On Monday, shares of Tullow Oil PLC shined as they shot up 9.3%
following speculation British oil major Royal Dutch Shell PLC
(RDSB) is interested in purchasing Tullow. Tullow shares rose 4% on
Friday. Royal Dutch Shell shares closed Monday's session up by
2.9%.
Other energy-related stocks notched gains, catching up with an
8% surge in Brent crude-oil and U.S. oil futures (CLH5) on Friday,
which came after European trading closed. Oil prices seesawed on
Monday, but oil producer BG Group PLC shares sprang up 5.3% and
energy- and industrial-engineering services firm Weir Group PLC
tacked on 3.2%.
BP PLC shares rose 3%. The British oil major -- whose financial
results are due Tuesday -- is expected to cut capital spending by
more than 10%, according to a report in The Guardian newspaper.
CRH PLC was the second-best performer on the FTSE 100, climbing
7.2% after confirmation the building-materials company is in talks
to purchase about 6.5 billion euros ($7.34 billion) in cement
factories and other assets from France's Holcim AG and Lafarge SA .
Holcim and Lafarge are working on completing a $40 billion
merger.
But decliners included airline EasyJet PLC , with shares down
6.4% as rival carrier Ryanair PLC was cautious about its outlook
for fiscal year 2016.
Kingfisher PLC also closed lower by 2.3% after Jefferies cut its
rating on the home-improvement retailer to hold from buy. Jefferies
said risks including currency headwinds balance out Kingfisher's
"fundamental attractions" such as exposure to strengthening
disposable income for U.K. consumers.
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