Next news boosts Footsie

The FTSE 100 Index powered through the 5700 mark today as the retail sector came into focus on the back of an upbeat Christmas trading statement from Next.

Shares in the high street fashion chain jumped 8% after it said annual profits would be better than expected on the back of improved sales over the festive season.

It boosted other stocks in the sector, including Marks & Spencer, and sent the FTSE 100 Index soaring up 25.4 points to 5706.9 by mid-morning – its highest level since July 2001.

It followed a bumper rally by stocks across the Atlantic after the Fed hinted that interest rate rises may be at an end. The Dow Jones Industrial Average racked up triple-digit gains last night.

In London, Next said it expected pre-tax profits for the year to January 28 to be between £435 million and £450 million, compared with City expectations of £420 million, taking its shares 117p higher to 1640p.

M&S also benefited – up 6p to 503p – as Investec Securities forecast a strong finish to the year in line with the performance of Next. The broker upgraded its rating on both stocks.

Hopes of bumper Christmas trading also lifted Dixons group DSG International, which was behind Next on the risers board with a lift of 2% or 3p to 169.25p.

But other retailers did not fare so well amid fears that Christmas had only been kind to a handful. Argos owner GUS slipped 7.5p to 1008.5p while Kingfisher was down 0.75p to 233.75p. Matalan was also down 1.75p to 182.75p.

A string of insurance groups were among today’s top performers including Legal & General, up 2.5p to 126.25p, Prudential adding 14p to 573.5p and Norwich Union owner Aviva up 13.5p to 721.5p.

Banking stock HBOS topped the fallers board after Goldman Sachs downgraded the stock. Shares slipped 18.5p to 973.5p.