MARKET REPORT: Oil prices rise after BP suspends deliveries to the Red Sea

Oil prices rose after BP halted shipments through the Red Sea as a rebel group stepped up attacks on ships in the region.

Global cargo companies have scrambled to divert their ships in response to Yemen's Houthi militants, who have wreaked havoc for weeks in a series of retaliatory attacks sparked by Israel's war against Hamas.

In its latest act of aggression, the group launched a drone attack on a cargo ship in the Red Sea off the coast of Yemen.

As a result, BP has temporarily halted all oil shipments through the region. The decision sent oil prices up nearly 3 percent to $80 a barrel on fears of a supply disruption.

That in turn pushed BP shares up 1.6 percent, or 7.35 cents, to 465.2 cents, and Shell rose 1.4 percent, or 34 cents, to 2,537 cents.

The FTSE 100 rose 0.50 percent, or 38.12 points, to 7,614.48 and the FTSE 250 rose 0.08 percent, or 11.58 points, to 19,220.55.

Shares in Entain rose as speculation over the status of Ladbrokes and Coral's owner as a potential takeover target grew.

Gambling giant FTSE 100 set up a joint company, BetMGM, with casino operator MGM in July 2018.

Entain then rejected an outright £8bn takeover – worth 1383p per share – of MGM in January 2021, also ruling out a second takeover bid in February.

Investment bank Jefferies upgraded its rating on the stock, sending the shares up 4.1 percent, or 38.6p, to 977.2p, as it pointed to Entain's management change and the impact of a new activist investor.

Last week, bookie boss Jette Nygaard-Andersen resigned after mounting pressure from investors.

A day after she resigned, activist investor Corvex announced a 4.4 percent stake in Entain and called for further management changes to improve the company's “unacceptable” performance.

Stock Watch – RBG

Shares in RBG hit a record low after a profit warning.

The AIM-listed professional services company, which owns two law firms and a corporate finance consultancy, expects to achieve a turnover of £42m and a profit of £4m this year.

But this is lower than market forecasts after the company was hit by a slowdown in activity in the commercial property and equity markets, with deals postponed or scrapped.

Shares fell 30.9 percent, or 5.1p, to 11.4p.

Mexican miner Fresnillo weighed on London's top index after Morgan Stanley downgraded its rating from equal-weight to underweight and cut its share price to 540p from 620p.

Shares fell 5.2 percent, or 30.6p, to 555p.

There was better news for Anglo American after a bullish comment from Barclays, which said it disagreed with the view that the mining giant is “no longer a growth stock.”

Analysts at the bank said the company could grow more than BHP (up 1 percent, or 27p, to 2611p), Glencore (up 0.4 percent, or 1.8p, to 462.65p) and Rio Tinto (up 1.2 percent, or 67p, to 5,765p) over the next four to five years.

Still, shares fell 0.1 per cent, or 2.6p, to 1821.4p.

It will provide some respite for Anglo, which earlier this month suffered its worst day on the London stock market since October 2008 after it outlined plans to cut output.

Pharmaceutical giant GSK got a shot in the arm after a major study showed that a combination of two of its drugs increased the chances of survival in cancer patients.

The group rose 1.7 percent, or 23.4 pence, to 1,442.6 pence, after reporting that a phase III clinical trial showed that the Jemperli treatment, when used alongside the other drug Zejula, improved survival' significantly improved' in patients suffering from endometrial cancer compared to chemotherapy alone. .

BAE Systems, Britain's largest defense group, added 1 percent, or 10.5 cents, to 1,068.5 cents after signing a deal to help repair and maintain Ukraine's artillery.

It was also a positive day for the Hollywood Bowl. Revenues at the bowling operator hit a record high for the year to September 30 as families opted for indoor activities during the rainy weather over the summer.

Shares rose 4.6 per cent, or 13p, to 295.5p yesterday.