Tokyo turn-up cheers FTSE investors

Investors piled back into London shares today amid relief at a rebound by Japan’s stock exchange.

Dixons owner DSG International and drugs company Shire led the return as the FTSE 100 Index reclaimed most of yesterday’s lost ground, edging back towards the 5700 mark.

The Footsie’s gain of 29.8 points to 5693.5 mirrored the performance of Japan’s Nikkei last night, where investors put a chaotic week behind them to snap up cheap looking stocks in the technology sector.

DSG International was the top Footsie performer as yesterday’s strong sales figures prompted broker Credit Suisse First Boston to raise its profits forecasts. Shares lifted 4% or 7.25p to 177.75p, adding to similar gains racked up yesterday.

Shire was boosted by news that it was in talks to settle a dispute over a rival’s plan to make a generic version of its hyperactivity drug Adderall XR, rising 28.5p to 840.5p.

A clutch of miners also featured on the blue-chip climbers board, including Kazakhmys up 28.5p to 844.5p and BHP Billiton rising 31p to 1018.5p.

But progress was held back by a number of stocks going ex-dividend, meaning investors are no longer entitled to the most recent payouts. Mobile phone giant Vodafone was the heaviest casualty, weakening 1.75p to 121.75p while water firm Severn Trent slipped 11p to 1116p.

Among firms providing updates today, Comet owner Kesa Electricals was in the doldrums after saying profits would be at the lower end of expectations following a poor performance at French chain BUT.

It showed an improved trend for UK sales in the run-up to Christmas but still failed to match the improvement of Dixons and Currys owner DSG International. Kesa shares fell 10p to 253.5p in the FTSE 250 Index.

But other retailers had better luck, with news of a 10.7% sales rise for fashion label Ted Baker sending its shares up 7.5p to 520p.