FTSE breaks through 4600 barrier

The FTSE 100 Index followed the lead of other world markets to break through the 4600 barrier today.

Bargain-hunting in the Far East helped Japan’s Nikkei index halt a nine-day losing streak, while the Dow Jones Industrial Average closed nearly 60 points to the good overnight. That ensured the Footsie stood 11.2 points higher at 4599.3 by mid-morning, although the top flight earlier peaked at 4607.8.

The positive mood came despite a disappointing trading update from high street retailer Boots.

The health and beauty chain topped the Footsie fallers board – down 19.5p at 642p – after reporting a cooling in sales growth and warning that margins had come under pressure from price discounting.

The rest of the retail sector was also in subdued mood with Sainsbury’s losing some of its recent strength to slip 4p to 256p. Rival Tesco fell 3p to 285.75p while Marks & Spencer lost 1.75p to stand at 343.5p.

Elsewhere, investors looked on the bright side of a trading statement from mmO2 after the mobile phone group reported first half revenue growth ahead of expectations, but warned of a significant slowdown in the second six months.

Shares cheered 2p to 97.75p while Vodafone also benefited with a 2p improvement to 133p. In the FTSE 250 Index, Virgin Mobile continued to suffer from its update earlier in the week, falling 3% or 5.5p to 177p.

Among other second tier-companies, dairy company Arla Foods surged almost 7% or 3.25p to 50.5p after announcing strong sales for its key brands, including Lurpak. The company also said it was closing two dairies.

And shares in car accessories and cycle retailer Halfords rose 3.5p to 296.75p on news that total sales improved 13% in the 25 weeks to September 24.