FTSE moves back towards positive territory

Retailers were in focus today as the FTSE 100 Index shrugged off yesterday’s losses to hover below the key 4600 barrier.

Tesco stood at the top of the Footsie risers board after revealing that profits had risen 24% to £822 million in the first half, surpassing analysts’ expectations.

This helped drive the Footsie beyond the 4600 support level, although by mid-morning it dipped slightly to stand 15.1 points higher at 4594.6.

However, one trader said the mood would remain cautious ahead of today’s interest rate decision in the United States.

Although Tesco’s results sent the stock 2% higher – up 5.5p to 280.75p – other retailers failed to impress the market.

Marks & Spencer was in the red, weakening 5.5p to 340p, after saying clothing sales during the summer had been difficult. The trading update came as the company said shareholders could get 10% more than the retailer’s current share price from its £2.3bn (€3.4bn) share buyback.

Rival Sainsbury’s was also in the doldrums, weakening 5.5p to 340p, while Boots retreated 7.5p to 672p.

Oil giants BP and Shell were a major driving force behind the Footsie’s gains as the cost of a barrel of crude remained above 46 US dollars in New York. Shell was the second highest climber, adding 7.25p to 429.75p, while rival BP advanced 8p to 536.5p.

But media stocks were proving a drag on the market, with Reuters falling 7p to 333.5p and ITV off 2.25p to 110p.

Newcomer Cairn Energy was also in negative territory on its second day in the Footsie, falling 18p to 1497p.

Outside the top flight, the UK’s largest pubs group Enterprise Inns moved 2.5p higher to 591p after saying that trading was “comfortably” in line with expectations. It also announced the departure of the managing director of Unique Pub Company, which was acquired by Enterprise earlier this year.