Footsie struggles to stay ahead

Retailers were among those hampering the performance of the London market today after data revealed sales slowed for the first time in more than a year.

The FTSE 100 Index stood just 5.9 points higher at 4361.1 by lunchtime - despite having progressed by some 25 points earlier in the session.

Figures from the Office for National Statistics showed sales volumes fell 0.4% between June and July – slightly worse than City expectations – after poor weather hit sales of clothing.

Although analysts said the fall would decrease the chances of another interest rate hike and boost shares, the news took its toll on the retail sector.

In the top flight, high street giant Next weakened 15p to 1486p and Marks & Spencer retreated 2p to 348p.

Elsewhere, FTSE 250 company JJB Sports was also down as it warned profits would be 20% down on City hopes after wet weather affected like-for-like sales.

JJB fell 14% or 31p to 185.5p while JD Sports owner John David Group fell 15.5p to 169p, a decline of 8%.

Other factors having an impact on the London market included the oil price, which soared to fresh record highs in New York.

Trading across the Atlantic was not expected to have a positive impact, with the Dow Jones Industrial Average tipped to open slightly lower today following last night’s impressive performance.

Those helping to keep the Footsie in the black included Friends Provident, up a penny at 130p, and Royal Bank of Scotland – 24p higher at 1526p. They were among a clutch of financial stocks in positive territory.

Fresh record crude prices failed to lift oil giant Shell beyond its opening mark – it remained unchanged at 395.25p by lunchtime – while rival BP moved 6p lower to 484.5p. BP was the third heaviest loser of the top flight stocks.

Gambling-based stocks were benefiting from an upbeat note on the sector from Goldman Sachs. William Hill featured at the top of the Footsie risers board with a gain of more than 3%, or 17p to 533p, and Ladbrokes owner Hilton added 3.5p to stand at 260.75p.

Back outside the top flight, Cairn Energy saw its shares fall despite news that it will formally confirm the extent of its reserves next month after an independent assessment of its oil strikes in India. The stock weakened 2p to 1435p.