London open: Sluggish spell continues

Shares are in indecisive mode again this morning though company updates have sparked investor interest.News last night the US government is to sue BP over the Gulf of Mexico oil spill has sent shares in the oil giant lower, though not drastically. It filed a civil lawsuit against BP and eight other companies over the Deepwater Horizon oil rig explosion and the subsequent oil spill in the Gulf of Mexico. The complaint, which has been filed at a District Court in New Orleans, names eight other defendants including the insurer Lloyds of London, rig owner Transocean and oil exploration group Anadarko. The US is seeking unlimited damages. Also in the oil sector, BG Group has hit a purple patch, announcing its second discovery in as many days, this time in the Santos Basin, offshore Brazil, where the eleventh well on the BM-S-11 concession struck oil. The well, in the western Tupi area 275 kilometres off the coast of Rio de Janeiro State and 11 kilometres northwest of the original Tupi discovery well, drilled down over 2,000 metres. Oil samples confirmed the presence of a light oil accumulation and the well encountered a 90-metre reservoir section on the western flank of Tupi helping further delineate the size and quality of the field, BG said Thursday.An upbeat trading update from Serco has impressed. The company which operates prisons, London's Docklands Light Railway, and many other outsourced government services says it is on track to meet expectations for 2010. Peer Capita is also higher.Sports Direct is in demand after it posted a sharp rise in profits in the half year to 24 October as the football World Cup and strong growth in internet shopping boosted sales, but the sports shop chain is anticipating a tough start to the new year. Underlying pre-tax profits were up to £100.7m, from £71.9m the previous year on revenues that climbed to £819.9m from £756.9m. "The group has continued to perform strongly during the first eight months of this financial year," said boss Dave Forsey. Real estate company Segro, formerly Slough Estates, has shifted finance director David Sleath into the hot seat to replace Ian Coull who retires after the AGM in April. Sleath, 49, has been the company's chief number cruncher since 1 January 2006, and his switch triggers a hunt for a new FD. Five-a-side football pitch operator Goals Soccer has seen resilient trading recently though the recent snowfall will have an impact of about £0.7m on pre-tax profits for the year to 31 December.