Footsie makes a bright start

Marks & Spencer and a clutch of utility stocks were in positive territory today as the FTSE 100 Index enjoyed an upbeat start to the week.

Helped by a gain of more than 2% for the Nikkei overnight, the Footsie had sufficient encouragement to reach mid-morning 16.8 points higher at 5534.2.

Financial stocks drove the uplift in Tokyo and that improvement was reflected in London, with Royal Bank of Scotland ahead 18p at 1702p and Barclays up 4.5p at 949p.

Lloyds TSB missed out early on, but shares shrugged off slight disappointment at the company’s “in-line” trading update to stand 3.75p higher at 486.5p.

Marks & Spencer topped the risers board for much of the session after broker Morgan Stanley upgraded the stock from “equalweight” to “overweight”.

Shares in the high street giant were ahead 8.25p to 487.25p – way above its 343p level of just three months ago.

But there was not such good news for rival Next, which Morgan Stanley downgraded. Shares in the retailer fell 29p to 1501p today.

Utilities were in good shape today after weekend reports suggested a Swedish firm was casting its eye over the sector. Scottish Power was up 5.5p at 541p, Scottish & Southern Energy gained 10p to 992p and National Grid cheered 7.5p to 552p.

And news that construction group Balfour Beatty was considering an offer to rival Carillion’s £290m (€430m) bid for Mowlem also sparked interest.

Shares in Mowlem were up 5p to 214.5p but Carillion fell 7.5p to 293p and Balfour Beatty slipped 2.75p to 346.5p.

Yesterday’s explosion at the Buncefield oil depot near Hemel Hempstead seriously damaged the head office of Northgate Information Solutions, sending shares 5% lower at one point. It later recovered to stand down 0.75p at 83p.

Online retailer ASOS suspended its shares at 77.5p after its new warehouse was damaged because of the blaze.