Retail stocks stimulate Footsie

Retail stocks did their best to stimulate the London market today as the blue-chip index proved unable to decide on its next move.

The FTSE 100 Index was up just 1.6 points at 3889.4 at lunchtime after remaining stuck in a narrow trading range throughout the session.

With little positive movement expected from Wall Street markets later today, traders were struggling for reasons to move their money.

Retailers at least provided some cheer as a clutch of high street names avoided shocks in the latest round of trading statements.

One of the brightest performances came from music retailer HMV after it announced sales rises in its core shops and Waterstone’s bookshop chain.

The FTSE 250 company rose 3% – up 3.75p at 118.75p – while in the top flight Dixons added 1.25p to 112p and B&Q group Kingfisher rose a penny at 195.75p.

Marks & Spencer was also back in fashion after its healthy sales rise yesterday was overshadowed by concerns over margins.

The stock, which closed almost 6% lower last night, was up 4%, or 12p, to 316p today.

But the mood of the wider market was poor following a weak session on Wall Street overnight and amid general nerves about economic prospects.

Among those pulling the blue-chip index lower was broadcaster Granada following a broker note highlighting renewed concerns about the state of the advertising market.

Granada fell almost 4% – down 2.75p at 69.75p – while potential merger partner and FTSE 250 stock Carlton Communications slipped 7.25p to 115.75p.

Among retailers reporting figures today Body Shop got a 16% lift as investors expressed relief that festive figures showing a 2% drop in like-for-like sales were not worse. Shares rose 10.5p to 74.5p.

Fashion retailer Ted Baker was also on the front foot, gaining 6p to 216p, after reporting that colder weather in the run-up to Christmas had offset weakness at the start of its financial year.

And bookshop chain Ottakar’s added 6p to 178.5p following a 5% lift in festive like-for-like sales.