Energy stocks drive FTSE higher after Shell results

The FTSE 100 index rose slightly higher on Thursday, maintaining positive momentum and led by energy stocks as investors welcomed better-than-expected results from Royal Dutch Shell .

The blue-chip index <. class="tpk">FTSE> was up 25.30 points, or 0.4 percent, at 5,744.19 by 0845 GMT, having closed up 0.2 percent on Wednesday, shrugging off UK GDP figures showing Britain had slipped back into recession.

Equity investors globally were encouraged after U.S. Federal Reserve Chairman Ben Bernanke reassured markets the central bank "would not hesitate" to launch another round of bond purchases to drive borrowing costs lower if it looked like the U.S. economy needed it.

Upbeat corporate newsflow drove a number of stocks to the top of the FTSE 100 leader board, including hotel operator Whitbread , which posted a rise in full-year profit, and consumer goods giant Unilever , whose first-quarter sales beat forecasts.

Shares in the companies advanced 3.8 percent and 3.2 percent respectively.

Barclays pointed out in a note that with 24 percent of the Stoxx 600 <.stoxx> having reported, the first quarter of 2012 appears to be off to a "significantly better start" than the fourth quarter of 2011.

Thomson Reuters Starmine data shows that half of the Stoxx 600 companies that have reported so far have beaten or met expectations.

Richard Jeffrey, chief investment officer at Cazenove Capital Management, reckoned a combination of companies beating earnings estimates and analysts revising up their forecasts could help market sentiment, but has a neutral view on equities.

"There's clearly downside risk - I don't think huge but there is downside vulnerability, and until people become more confident about economic numbers coming out of the States and other major economies I think it will be difficult for markets to make significant headway."

Integrated oil stocks were by far and away the best performers, adding 25 points to the index, after Royal Dutch Shell unveiled an 11 percent rise in fourth-quarter profit, as higher oil prices outweighed the impact of lower U.S. gas prices.

Shell's shares were among the top blue-chip gainers, rising 2.8 percent.

"Refining continues to be a drag, with global indicator margins pressured bar a minor pick-up in western Europe, but we have not seen a repeat of the shock loss in Q4 as trading's contribution has been a positive kicker too," Investec Securities said in a note.

While the broker perceives the beat as a quality one, it still sees Shell as relatively overvalued, and despite year-to-date underperformance, would continue to switch given the stock's premium rating to the sector.

Royal Dutch Shell trades on a 12-month forward price-to-earnings of 7.2 times, more than BP on 6.2 times but lagging BG Group on 13.8 times, according to Thomson Reuters Starmine data.

justin beiber dia de los muertos dia de los muertos david arquette