World unrest keeps market uncertain

Escalating political unrest in North Africa has continued to weigh on investor minds as the London market made an uncertain start to the week.

The FTSE 100 Index edged forward 15 points to 6098 amid violent clashes in Libya, where Libyan leader Muammar Gaddafi’s son Saif al-Islam warned civil war could hit the country.

The crisis pushed the oil price to its highest levels since September 2008, with brent crude oil jumping to 103.86 US dollars (£63) a barrel.

Analysts noted light trading volumes in London, with US markets also shut due to the President’s day holiday.

Banks weighed on the market, with Royal Bank of Scotland – due to publish full-year results this week – at the top of the fallers’ board, down nearly 2% or 0.8p at 47.7p. Barclays was not far behind, off 2p at 327.5p.

But miners helped offer support, with silver miner Fresnillo up 37p at 1544p, Lonmin ahead 26p at 1879p and BHP Billiton adding 27p at 2418p.

Oil giants surged on the inflated prices, with Tullow Oil 10p dearer at 1386p, Cairn Energy up 2.3p at 424.3p and Essar Energy ahead 4p at 522p.

In corporate news, property firm Hammerson moved near the top of the risers’ board after it revealed a recovering UK retail market helped 2010 profits rise 11%.

The owner of the Bullring and Brent Cross shopping centres revealed underlying profits of £144.5 million in 2010, up from £130 million in 2009. Shares were up 7.4p at 454.9p.