FTSE: Positive start for retail sector

A big week for the retail sector began positively today as healthy Christmas sales at camera specialist Jessops sparked investor interest in the owner of Dixons.

DSG International, which owns Dixons and Currys, rose 2.5p to 170.5p in the wake of the news from Jessops that like-for-like sales were up 9.4% in the five weeks to New Year’s Day.

There were also gains for prospective merger partners Boots and Alliance UniChem following some upbeat comments by broker JP Morgan, contributing to the FTSE Index lifting 15.5 points to 5747.3 by mid-morning.

Boots lifted 7.5p to 630p after JP Morgan said the retailer seemed to have traded reasonably over Christmas and its shares were not being fairly valued by the City.

JP Morgan added that management at Alliance UniChem – up 13p at 819.5p – had clarified the benefits of the merger.

Outside the main tier, the retail spotlight fell on Jessops and the firm rose 6% or 6p to 103p as analysts indicated they would take another look at their profits forecasts.

Scottish Power was also helping to drive the top flight onwards after a weekend media report suggested that German industrial giant E.On had not ruled out a new takeover attempt.

Shares in Scottish Power improved 3p to 545.5p, but rivals were not faring as well as United Utilities dropped 5.5p to 650.5p and National Grid weakened 6p to 557p.

B&Q owner Kingfisher faded 1.5p to 233p after paving stone maker Marshalls flagged particular weakness in recent sales to the DIY sector.

Marshalls rose 1.25p to 314p after progress elsewhere in its business put like-for-like revenues from continuing operations on course to rise by 1% to £332m (€485.7m) in 2005.

Budget airline easyJet soared to its highest level for three and a half years - up 26.25p to 406p – after it carried more than 30 million passengers during a year for the first time.

Shares in glass maker Pilkington dropped 6.25p to 144p after weekend media reports said Japanese firm Nippon Sheet Glass had gone cold on a takeover deal.