FTSE holds up on quiet business day

The FTSE 100 Index held its nerve today despite seeing Asian markets tumble overnight.

Weakness in the tech sector, coupled with renewed worries over oil prices and interest rates, caused the Nikkei to decline 2% and initially prompted a lacklustre start to business in London.

But the Footsie recovered from a 19-point fall in the first hour to stand 4.8 points higher at 4498.1 by mid-morning – a performance that means the top flight is poised for a modest improvement on the start of the week.

With little in the way of corporate and economic news, City experts were not expecting much of a change in the position later today.

Supermarket group Tesco did its best to breathe life into the market after reporting another strong set of trading figures.

Shares rose 4p to 267p as the company announced a better-than-expected rise in like-for-like sales for the first quarter of 7.8%.

Morrisons, which recently sparked a price war with its acquisition of Safeway, fell 1.5p to 237.75p, although Sainsbury’s was 1.5p stronger at 280.25p.

In general, retailers were enjoying a strong session with Argos owner GUS at the top of the risers board with a gain of 19p to 873p. B&Q owner Kingfisher was also 2.75p higher at 297.75p.

Outside the top flight, software group Misys added to the jitters in the tech sector by offering little sign of an improvement in trading at its financial services operation. Shares tumbled 20p to 194p.

Bob the Builder entertainment group HIT recovered some of the ground lost yesterday following a profits warning. Shares, which tumbled 29% last night, were up almost 4% or 8p at 218p.

Elsewhere, news of a takeover approach for Chez Gerard owner Paramount failed to spark shares, which were off a penny at 34p. That was despite confirmation of a potential offer valuing the company at up to 35p a share.