December 6, 2002	Friday	Shawwal 1,1423

LONDON, Dec 5: Stronger oil firms BP and Shell kept Britain’s FTSE 100 share index in higher ground on Thursday, although a lower opening on Wall Street amid nervousness about economic recovery wiped out much of the gains.

Soft drinks and sweets maker Cadbury Schweppes rose 2.1 per cent as investors welcomed a reassuring trading update and news John Sunderland would become chairman and Todd Stitzer chief executive officer in May.

Dealers said the firm’s defensive qualities had also attracted attention, as the blue-chip index’s rally showed signs of faltering amid fears that economic recovery may be some way off.

By 1458 GMT the FTSE 100 share index was up 10.7 points at 4,059.3, retreating from an earlier high at 4,109.9. The leading index stood at the lower end of the recent trading range between 4,000-4,200 points.

“We need a lot more evidence to spark a rally and now its beginning to feel like the market’s going to fizzle out towards the end of the year,” said one dealer.

“There’s a sense that people don’t want to get over-involved and want to wind down what has been an extremely difficult year,” he added.

BP gained 1.3 per cent and Shell rose 0.5 per cent, tracking a rise in crude oil futures as the impact of an extended Venezuelan strike appeared to worsen, adding to fears of disruption to supplies.

Banks clung onto slim gains, with Barclays up one per cent, recovering from a beating on the back of gloomy trading updates earlier this week. Shares in Royal Bank of Scotland rose 1.7 per cent.

But insurer Friends Provident shed 6.8 per cent after it launched a 180-million-pound convertible bond. Traders bought the bond and sold shares instead.

On Wall Street, the Dow Jones industrial average was 0.7 per cent lower, while the technology driven Nasdaq Composite dipped 0.1 per cent.—Reuters