FTSE fails to kick back

London’s FTSE 100 Index failed to kick ahead today despite receiving a dose of upbeat corporate news.

The Footsie at least managed its first positive close of the week – up seven points at 4067.9 – but failed to build on an earlier 30 point rise.

Analysts said the evening’s US interest rates decision had increased uncertainty and meant investors were content to stay on the sidelines.

The tepid performance came despite encouragement from the retail sector after high street electrical goods group Dixons said it had beaten trimmed down profits expectations.

The group, which also owns the Currys, PC World and The Link chains, made underlying profits of £301.3m (€435.7m) in the year to May 3 after a strong performance overseas helped compensate for a tough Christmas period in the UK.

The shares sparked 18% or 19.75p to 131.5p as Dixons topped the Footsie risers board.

The news boosted other retailers, with Comet owner Kingfisher up 8.75p to 272.75p and Argos operator GUS climbing 21p to 671p.

Cable & Wireless followed Dixons on the risers board after unveiling the sale of its French internet access business. The group’s shares advanced 7p to 109p while among other telecoms stocks BT Group climbed 4p to 200.75p.

Supermarket were also in focus as investors continued to digest the Competition Commission’s remedies report into the Safeway takeover. Sainsbury’s rose 4.75p to 256p, Morrisons gained 2.25p to 184p and Tesco rallied 3.5p to 215p.

Meanwhile, high street chain Marks & Spencer gained 3.5p at 306.25p.

Among the banks, which were having a mixed session, HBOS edged 0.5p higher to 807p after announcing a joint venture arrangement with Direct Line founder Peter Wood to target high-premium car insurance customers.

Rival Abbey National was 7.5p higher at 479.75p and insurer Royal & Sun Alliance put on 6p to end the day at 136p.

Outside the top flight, house builder Persimmon rose 24p to 487p on news that first half profits would be at least 20% higher than last year.

Bus and train operator Stagecoach drove up 4.25p to 61p, although annual results showed it dropping into the red at the bottom line.

The group reassured investors that it was on track with both its US restructuring and in securing the future of its UK rail operations. Rival Arriva pushed up 3.5p at 340.5p.

But sports retailer JJB fell heavily after a downbeat trading statement and news that chairman David Whelan was non longer interested in buying the company. It fell 14% or 30p to 186p.

IT services firm Xansa also saw its shares slide 8p to 86.5p after giving a cautious outlook and reporting a 40% fall in annual pre-tax profits.

The day’s biggest risers were Dixons up 19.75p at 131.5p, Cable & Wireless lifting 7p to 109p, Royal & Sun Alliance up 6p to 136p and Hanson ahead 13.5p to 368.5p.

The biggest fallers were United Utilities, down 40.5p to 584p, Allied Domecq off 11p to 332p, Schroders down 11.5p to 569.5p and Land Securities off 16p to 808p.