The FTSE 100 closed higher on Tuesday, although a fall in oil major BP after the unexpected departure of chairman Albert Manifold limited gains. The FTSE 100 closed up 25.13 points, 0.2%, at 10,491.39. The FTSE 250 ended up 160.02 points, 0.7%, at 23,327.49, and the AIM All-Share rose 12.23 points, 1.5%, at 812.46.
The unexpected exit of BP chairman Albert Manifold saw shares in the oil major drop 4.0%. The London-based firm said he had been removed as chairman and director, citing “serious concerns” that were raised to the board “related to important governance standards, oversight and conduct”. Mr Manifold’s ousting is the second major executive replacement at BP for conduct reasons in three years, after former chief executive Bernard Looney was replaced in 2023 because of failings in his personal conduct.
“At this point it’s fair to say BP has the most volatile boardroom of the oil supermajors,” commented Lindsey Stewart, director of institutional investor content at Morningstar. Mr Manifold became chairman of BP in October, after joining the board in September. Between 2014 and 2024, he was chief executive of Dublin-based building materials provider CRH.
“The fact that Manifold has left so soon raises genuine concerns about HR policies at BP, and the corporate culture. It also suggests a lack of stability at the firm, which is bad news for shareholders,” said Kathleen Brooks, research director at XTB.
Elsewhere, events in the Middle East continue to dictate market movements, after US military strikes on Iran deflated hopes of an imminent deal to reopen the Strait of Hormuz. The US and Iran have been working on an agreement to end the Middle East war and reopen the crucial waterway to tanker and cargo traffic since a fragile ceasefire on April 8. Iran accused the US of breaching their ceasefire and warned it was ready to retaliate after the US strikes. But despite the strikes, US secretary of state Marco Rubio said on Tuesday that a deal remained within reach.
In European equity markets on Tuesday, the CAC 40 in Paris ended down 1.0%, and the DAX 40 in Frankfurt fell 0.8%. In New York, the Dow Jones Industrial Average was up 0.6%, the S&P 500 was 0.4% higher, and the Nasdaq Composite climbed 0.2%. Financial markets in the UK and US were closed on Monday for public holidays.
