A fall of more than $2 a barrel, prompted by talk of a sizeable increase in production by Saudi Arabia, has pushed oil company shares lower. But overall the market has ended the week on a brighter note.
The FSA's move to curb short selling of companies which are in the middle of rights issues had some effect. HBOS, which fell below its rights price earlier this week, closed 38.75p higher at 321.75p, while Johnston Press added 11.75p to 69.75p compared to its 53p a share cash call price. Bradford & Bingley bounced 6.25p to 78.75p despite a sell note from Shore Capital.
Housebuilders, which have been weaker on fears they too may ask shareholders for money, also benefited. Barratt Developments closed 10.25p higher at 86.5p, while Taylor Wimpey recovered 9.5p to 70.5p.
With Wall Street moving higher as investors decided that May's inflation figures were as good as could be expected, the FTSE 100 ended the week 12.3 points higher at 5802.8.
But the oil companies were among the main losers in the leading index. Cairn Energy lost 142p to £32.83, Tullow Oil was 33p lower at 887p and BP slipped 9p to 585.25p.
