Footsie moves clear of 5500 mark

Positive news for some of the UK’s biggest retailers helped the FTSE 100 Index edge further above the 5500 mark today.

Gains by the likes of Argos owner GUS and high street giant Marks & Spencer helped inspire confidence across the sector, with B&Q group Kingfisher and Next also in the black.

The Footsie stood 6.6 points higher at 5513.8 by mid-morning as London stocks also took their lead from a positive performance in New York last night.

As widely expected, the US Federal Reserve raised interest rates last night but suggested the tightening of monetary policy may be coming to an end, helping shares on Wall Street.

In London, the market welcomed news from GUS that it had acquired an American website where online shoppers can compare retailers’ prices. The £273 million deal for PriceGrabber.com sent shares up 19p to 1002.5p.

M&S advanced 8.5p to 486.5p after broker Credit Suisse reiterated its “outperform” rating on the stock and lifted its price target to 500p.

Other retailers also found friends, with Kingfisher adding 2.75p to 228.75p and Next up 12p to 1517p.

Hilton Group featured on the Footsie leaders’ board as speculation continued that suitors were circling the hotels sector. Shares were up 3.5p to 350.25p, while rival Intercontinental Hotels was up 3p to 815p.

But utilities weighed on the market, with water group Severn Trent the heaviest faller – off 38p to 1037p – and International Power weakening 3p to 245.75p.

Elsewhere, Hovis bread owner RHM cheered 4%, up 10.25p to 268p as investors welcomed news that first half results were in line with expectations despite disappointing sales of the Mr Kipling range.

However, book retailer Ottakar’s was in the doldrums after it revealed worsening sales despite the release of the sixth instalment of Harry Potter and Jamie Oliver’s latest cookbook. Shares fell 13p to 352p.