LONDON, July 15: Shares in London rose slightly on Tuesday, as a rally in the banking sector lifted market sentiment, dealers said. The FT-SE 100 index of leading shares rose by 8.6 points to 4,866 points. Dealers said that the London market rose on the wings of stronger banking stocks. Shares in Hongkong Bank parent, HSBC led the sector higher, after the stock made a record showing in Hong Kong overnight.

In London, the stock rose by 34.5 pence to 2,035 pence. Barclays Bank shares rose by 12.5 pence to 1,246.5 pence in the light of positive broker comment. Dealers added a note of caution, however, and warned that the market might fall victim to profit-taking after a record close on Monday and no strong lead shown by Wall Street.

ICI chemicals stock rose by two pence to 882 pence after positive comment on the sale of industrial chemicals businesses to DuPont of the United States for $ 3 billion. Shares in P and O, the shipping company, rose by 4.5 pence to 637.5 pence after a surge in traffic on its cross-Channel ferry services.

In contrast, oil stocks fell on weaker crude prices. Shell Oil shares fell by 2.5 pence to 426 pence and British Petroleum (BP) shares fell by one pence to 788.5 pence. Shares in BSkyB, the satellite broadcaster controlled by Rupert Murdoch, fell by seven pence to 448 pence in the wake of negative press comment.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.