Lower oil stocks derailed the FTSE 100 Index yesterday as further strides towards the 6000 barrier came to nothing.

Takeover activity in Europe boosted energy stocks while gains for insurers and banks had earlier looked like continuing the market's recent strong run.

But oil companies Royal Dutch Shell and BP gave back gains from the previous session to leave the Footsie 5.3 points lower at 5857.7 by the close.

The electricity sector was the day's top performer after German utility and Powergen owner E.ON made a £20bn offer for Spanish utility Endesa.

It sent stocks in London soaring as investors looked for further consolidation in the sector. International Power neared the top of the blue-chip risers' board with a gain of three per cent, or 9.5p, to 284.5p, while British Gas owner Centrica was 1.25p ahead at 297.25p and Scottish & Southern Energy rose 16.5p to 1157p.

The banking sector was also in positive territory despite little movement from Barclays shares - up 1.5p to 645.5p - in the wake of a 15 per cent rise in profits.

The solid performance from Barclays raised hopes that the rest of the sector will meet expectations during the rest of the results reporting season.

Rival HBOS gained one per cent or 13p to 1036p, while Alliance & Leicester was up 22p to 1142.5p and HSBC added 1.5p to 645.5p.

Insurers were in good shape after Prudential said the value of its £83bn with-profits fund increased by 20 per cent during 2005. Shares were up two per cent, or 12.5p to 617.5p, while Norwich Union owner Aviva added 8p to 760p and Legal & General rose 2.5p to 131p.

Among companies reporting results, chocolate and drinks group Cadbury Schweppes achieved its biggest sales growth in over a decade - overtaking Mars as the world's largest confectioner by market share in the process.

Cadbury gained more than two per cent, or 14p to 574p, as growth in new markets helped it deliver a 6.3 per cent rise in sales to £6.51bn last year. It sent pre-tax profits up 12 per cent to £873m.

But it was less good news for brewer Scottish & Newcastle as investors concentrated on tough market conditions as opposed to a 9.5 per cent rise in profits last year. Shares in S&N, whose brands include Foster's and John Smith's, fell one per cent or 6.5p to 507p.

Online casino PartyGaming was among the day's other biggest movers after ABN Amro upgraded the stock from hold to buy and raised its target price to 160p. The PartyPoker operator gained four per cent or 4.25p to 123p, while smaller rival 888 Holdings rose 5p to 191p.

Elsewhere, George Wimpey gained 6p to 551p after it said a rally in the housing market at the end of 2005 was set to continue this year.

The biggest Footsie risers were PartyGaming up 4.25p at 123p, Kazakhmys ahead 31p at 924p, International Power up 9.5p at 284.5p and Cadbury Schweppes ahead 14p at 574p.

The biggest fallers were Carnival, Schroders NV, Schroders, and Kingfisher.