Retail figures shuffles FTSE into the black 08/05/2008 - 18:30:44
Reassuring news from the high street saw retailers take the starring role today during an otherwise subdued London session.
Positive updates from clothing chain Next, household goods giant Unilever and jeweller Signet Group saw their shares make strong headway and helped buoy the sector by more than 3%.
The FTSE 100 Index ended the day 9.8 points ahead at 6270.8 after trading was boosted by early Wall Street gains as better retail news also buoyed US markets.
Earlier the London, mood had been dampened after the Bank of England quashed hopes of a rate cut by keeping borrowing costs unchanged at 5%.
Blue-chip retailers featured on the gainers’ board however, thanks to Next suggesting that trading had picked up in recent days.
The group’s shares jumped 6%, or 74p to 1302p, after it said the warm weather offset a tough first quarter of the year, keeping it on course to meet forecasts for full-year profits.
Rival retailer Marks & Spencer also rose on the news, ahead 15.5p at 411p, or 3%, while Argos owner Home Retail Group cheered 12.75p to 280.75p.
As well as the boost from Next, investors cheered better-than-expected performances from accountancy firm Sage and consumer products giant Unilever.
Unilever lifted 90p to 1752p as it successfully passed on rising costs and said underlying sales were likely to rise by more than 5% this year. That was ahead of its previous estimate for growth of between 3% and 5%.
At the top of the list of share risers, accountancy software group Sage leapt 15.5p ahead to 226.5p after half-year profits came in ahead of expectations and it said recurring subscription contracts would protect it in tougher economic times.
Shares in Signet Group, which trades as H Samuel and Ernest Jones in the UK, rose 5.25p to 77.25p after revealing first quarter like-for-like sales in the UK rose 5.3%.
There was little respite for airline British Airways however after shares fell 3.5p to 238.5p, reflecting a broker downgrade from Cazenove and ongoing woes stemming from oil prices of more than US$123 a barrel.
Enterprise Inns, the UK’s second largest pub chain with nearly 8,000 pubs, was a big loser following yesterday’s 29% rise on news of Government approval to convert to a more tax efficient property status.
Shares fell 11p to 499p as mixed broker comments took the shine off yesterday’s announcement.
Britain’s up-for-sale nuclear power firm British Energy also lost ground, off 19p to 715p, after reports of bids being prepared at the lower end of analyst expectations.
Banks were under pressure after the interest rate vote, led by Barclays, off more than 2%, or 12p, to 463p, and Royal Bank of Scotland, which was down 6.75p to 357.25p.
The Footsie’s four biggest risers were Kazakhmys, up 176p to 1914p, Sage up 15.5p to 226.5p, Lonmin up 196p to 3408p, and Next which closed 74p up at 1302p.
The four biggest fallers were Carphone Warehouse, down 10.25p to 289p, British Energy down 19p to 715p, Barclays off 12p at 463p and Enterprise Inns which was 11p at 499p.
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Reassuring news from the high street saw retailers take the starring role today during an otherwise subdued London session.
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