Next surges ahead, Footsie falls back

Retailers bucked the negative trend in the London market today after high street giant Next pleased investors.

Although the FTSE 100 Index stood 7.2 points lower at 4551.2 by lunchtime, Next surged to the top of the risers board after reporting a 30% leap in profits.

The stronger-than-expected results sent Next shares more than 3% higher, up 54p to 1571p.

As well as Next, Boots lifted 6.5p to 691p and Dixons lifted 1.25p to 164p as the retail sector got some much needed cheer from the performance of one of its biggest members.

The improvement by Boots came as it announced plans to ditch a range of health services, including laser eye correction and dentistry.

While the move will cost it £55 million, the company said it would improve trading profits.

Trading in New York was not expected to lend positive momentum today, with the Dow Jones Industrial Average tipped to start below its opening mark. Retail sales figures from the US will lend some direction.

Elsewhere in London, mobile phone group Vodafone provided a drag on the market after broker Smith Barney downgraded the stock.

Vodafone fell 2% or 3.25p to 130p, although rival mm02 shrugged aside earlier losses to climb half a penny to 95p.

In the second-tier, French Connection moved in the opposite direction to Next after reminding investors about just how tough retail conditions are.

With half-year like-for-like sales in the UK sharply lower and little sign of an upturn in August, French Connection shares fell 9%, or 33p to 339.5p.

There was also further woe for investors in Regent Inns after the owner of the Walkabout chain failed to post results because of accounting problems. Shares, which tumbled last week on the resignation of the company’s chief executive and finance director, were off another 16% or 6p to 31p.

Housebuilder Redrow was another faller, down 8.75p to 369p, despite a healthy set of full-year results and a strong forecast for the year ahead.

Retailer MFI saw its stock fall 2p to 106p after two directors left following supply chain problems that left the group struggling to deliver orders.

And aerospace and defence group Cobham was also in the red, off 52p to 1400p, despite saying the civil aviation market was picking up and posting a 7.8% rise in first half pre-tax profits to £51.8 million.