Post-Christmas boost for FTSE

Investors received a post-Christmas boost today as utilities helped the FTSE 100 Index move above the 5600 barrier.

Gains by the likes of National Grid and Severn Trent ensured blue-chip stocks resumed trading on a positive note, although progress was held back by oil heavyweights. The Footsie added 6.1 points higher to 5601.7 by mid-morning.

On a quiet day for corporate news, National Grid featured high on the top flight risers board, adding 8.5p to 572p, while water company Severn Trent also climbed more than 1%, up 14p to 1080p.

Cadbury Schweppes made progress after announcing it had sold its US-based Holland House cooking wines business for around £21m (€31m). The stock cheered 8p to 550.5p.

Retailer Next was helped by trading figures from department store chain John Lewis, which said sales improved by almost 12% in the month before Christmas.

Although Next slipped from its early position as the highest Footsie climber, it still stood 1% higher, up 16p at 1560p by mid-morning, while Marks & Spencer built on a recent strong run, advancing 6p to 504.5p.

And pharmaceuticals giant AstraZeneca drew a positive response after striking another deal in a bid to boost its pipeline of new drugs. On this occasion it signed a research and licensing agreement with Targacept, lifting shares by 33p to 2828p, a gain of more than 1%.

The main drag on the market came from oil stocks with BP off 8.5p at 613p and Royal Dutch Shell 14p lower at 1844p.

Blue-chip housebuilder Persimmon was also off colour despite property website Hometrack saying that house prices rose for the first time in 18 months during December. The stock weakened 12p to 1263p, while smaller rival McCarthy & Stone lost 11p to 647p.