Retail giants Marks & Spencer and Next saw shares surge more than 6% today after the pair reassured investors over current trading conditions.
Marks & Spencer led the FTSE 100 Index for much of the session as the high street bellwether posted forecast-beating first-half profits.
Other retailing stocks were also in demand as the top flight added 38.9 points to 5076.1 by mid-morning, reclaiming some of the ground lost yesterday.
M&S added 20.1p to 361.1p after reporting profits of £298.3m (€333.8m) for the six months to September 26 and a decent start to the third quarter.
Fashion chain Next was 112p higher at 1922p after lifting its sales forecasts for the rest of the year. The firm said the consumer climate had been “more benign than we anticipated”.
Elsewhere in the sector, Argos and Homebase firm Home Retail Group cheered 17.6p to 301.5p while B&Q owner Kingfisher was 8p dearer at 232.1p.
Meanwhile part-nationalised Royal Bank of Scotland clawed back some of Tuesday’s 7% fall following the announcement of break-up plans and a £25.5bn (€28.5bn) capital injection from the state. Shares were up 1.1p to 37p.
Among the few blue-chip stocks in negative territory were index heavyweights GlaxoSmithKline and Royal Dutch Shell, down 11.5p to 1217p and 23p to 1738p. The duo turned ex-dividend, meaning investors are no longer entitled to the latest payout.
Housebuilders dominated the risers board in the FTSE 250 Index after Taylor Wimpey said market conditions were “significantly better” from July 1 to date than last year, with cancellation rates at 16%, against 46% in 2008. It is also looking to push through higher selling prices.
The company’s shares rose 9% or 3.5p to 40.4p, while Persimmon added 38.3p to 421.3p and Barratt Developments lifted 9.5p to 130.4p.
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