FTSE hits record high after BP stock goes up for second day

FTSE hits record high after BP stock goes up for second day

The UK FTSE 100 index returned to a record high after the oil giant promised to give more cash back to shareholders after the shares of Bloomberg-BP Plc went up for a second day.

The stock was up by 3.4% to 533.7 pence on Wednesday, an increase of 8% in the previous session. According to Bloomberg, Tuesday s gain was the biggest for BP's stock on any quarterly results day for at least a decade.

A 10% increase in dividend and an extra $2.75 billion of share buybacks was announced by BP, after the rewards of higher oil and gas prices.

Read: Big Oil s Rally Stalls, Even With All the Buybacks: Taking Stock

Analysts at Barclays Plc on Wednesday gave BP a 1,000 pence-a-share price target - the highest among 25 firms surveyed - while describing it as the most misunderstood company in its coverage. The analysts wrote that the longevity in the traditional upstream business and a profitable renewables unit should drive stronger cash flow.

With a weight of almost 5% in the British blue-chip benchmark, BP pushed the FTSE 100 up more than 1% in two days, reaching a new all-time peak of 7,928 points.

Oil has gained its biggest gain in three months on the optimism that the Federal ReserveFederal Reserve will relax its interest rate hikes, which is a benefit to global energy stocks.

Sam Unsted, James Cone and Ludovic Theunissen assisted in the process.

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