Stock Exchange looks at retailers' shares

The London Stock Exchange remained focused on the high street during an otherwise sluggish session today.

With the US markets closed for the Martin Luther King holiday, there was little to motivate the City. The FTSE-100 finished up just 4.8 points at 6170.3.

Railtrack's shares were down after it said the cost of the Hatfield crash and the subsequent repair programme would be more than double original estimates. Railtrack was down more than 3% in early trading before recovering slightly to close down more than 2%, off 25p at 968p.

However, the market's spotlight was again firmly on the retail sector as the rash of Christmas trading statements continued. Tesco, the UK's leading supermarket, initially rose 3%, or 6.75p, at 264.25p after announcing stronger than expected festive sales. The price later slipped back to finish ahead 2.50p at 260p.

Kingfisher saw its shares make early losses following reports it had been approached by investment banks and private equity firms keen to snap up its Superdrug chain. Such a move could threaten Kingfisher's plans to demerge the divisions from its electrical and DIY businesses, including Comet and B&Q in the UK. However, Kingfisher, which issues its Christmas trading statement tomorrow, recovered lost ground to finish up 3p at 490p.

Among the other retailers, Safeway, whose statement is due out tomorrow, rose 2p at 300p. However, Boots, which will tomorrow report to the City on its Christmas trading, was another faller, off 23p to 549p. And the turmoil continued for discount retailer, Matalan, which fell more than 10%, or 52p, to 442p, adding to its falls from last week.

However, oil stocks were enjoying strong gains and included BP Amoco, ahead by 15p at 570.50p, and Shell 17.50p stronger at 566.50p, on hopes Opec may announce a cut in oil production.

The other big corporate news was provided by the construction and housebuilding sector. Bryant postponed the EGM into its proposed merger with Beazer after receiving an 11th hour offer from Taylor Woodrow. Bryant's share price rose 3p at 185p, while Beazer was ahead 6p at 174p and Woodrow down half a penny at 171p.

Persimmon, which had earlier expressed its interest in Beazer, fell 8.50p at 268.50p.

Among the minnows, Huntingdon Life Sciences lost 36%, falling a penny to 1.50p. The animal testing laboratory today said it was continuing discussions regarding an extension to its bank facility. Cake firm Inter Link Foods however rose nearly 10%, or 27.50p, to 312.50p after unveiling strong interim figures.

The biggest risers on the Footsie were Dimension Date up 27p at 458p, ICI up 27.50p at 534.50p, GKN up 41p at 802p and Granada Compass up 31p at 736p. The biggest fallers were PowerGen down 26.50p at 610p, Boots down 23p at 549p, Energis down 19p at 551p, and Lattice Group down 4.50p at 133.50p.