Inurers buoy Footsie

The London market overcame jitters in the retail sector and downbeat trading on Wall Street to make a positive start to the week today.

Although a profits warning from photographic specialist Jessops cast a shadow, progress by stocks such as media group BSkyB and a string of insurers helped buoy the mood.

The FTSE 100 Index ended the session 10.2 points higher at 4933.5.

Significant losses across the Atlantic failed to drag the Footsie into the red - the Dow Jones Industrial Average lost around 80 points by the end of trading in London.

At home, BSkyB was the second biggest riser after an upbeat broker note from Credit Suisse First Boston. Shares lifted more than 2%, up 14p to 577.5p.

The insurance sector was also buoyed by a broker upgrade for Friends Provident - ahead 2.25p at 178.5p – while Royal & Sun Alliance cheered half a penny to 78.5p and Legal & General rose 1.5p to 118.75p. However, Norwich Union owner Aviva lost early gains to slip back 1.5p to 648p.

Other risers included Build Center chain Wolseley, which advanced 5p to 1100p after posting record half-year figures and encouraging investors with a positive outlook for the rest of the financial year.

There was a further boost from the cigarettes industry after Imperial Tobacco - up 8p at 1399p – said trading remained in line with management expectations. Rival BAT followed Imps higher with a gain of 3p to 923p.

But cruise giant Carnival was the heaviest faller amid concerns over high fuel costs – even thought it said higher cruise ticket prices helped cushion the impact. The stock fell 134p to 2921p.

And retailers were again under pressure after the sector received a further jolt from Jessops, a surprise victim of the slowdown in consumer spending.

Jessops shares plunged 31% or 47.5p to 107p after it said sales of digital cameras had shrunk considerably in February and March.

The news unsettled investors in top-flight electricals specialist Dixons, which fell 0.75p to 150p. Among other retailers, Morrisons fell 1.5p to 200.25p as investors prepared for a disappointing set of results on Wednesday.

Elsewhere, Bob the Builder owner Hit Entertainment advanced 4% or 12p to 305p - ahead of the 300p a share or £489 million offer from private equity firm Apax Partners announced today. The share price premium suggested hopes that a rival offer for the group could yet emerge.

But film studio Pinewood Shepperton saw its share price fall 28p to 184.5p after warning results in the first half of its financial year would be affected by uncertainty surrounding Government funding of the film industry – an issue it said had since been resolved in last week’s budget.

The highest Footsie risers were Alliance UniChem up 20p to 780p, BSkyB rising 14p to 577.5p, Cable & Wireless up 2.5p to 127p and Severn Trent rising 17p to 905p.

The heaviest fallers were Carnival down 134p to 2921p, International Power off 7.75p to 177.5p, Exel down 11.5p to 862p and British Airways off 3.5p to 264.25p.