FTSE close to 5700 barrier

The London market was unable to cling on above the 5700 barrier today even though a rebound by stocks in Japan boosted morale.

The FTSE 100 Index rose as much as 46 points as traders saw an opportunity to pick up shares in UK companies more cheaply than at any time for the past fortnight.

But a more conservative attitude was seen late in the afternoon as the Footsie closed 29.5 points higher at 5693.2.

Its recovery followed a rise of more than 350 points on the Nikkei Index in Japan as the technology sector rallied following the chaotic session of yesterday, which included the Tokyo Stock Exchange closing early for the first time in its history.

DSG International was among the top performers as yesterday’s strong sales figures prompted broker Credit Suisse First Boston to raise its profits forecasts. Shares lifted 3.75p to 174.25p, adding to gains racked up yesterday.

B&Q owner Kingfisher was pulled upwards amid relief at the performance from one of the UK’s biggest barometers of high street confidence. Kingfisher lifted 4p to 239.25p.

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 23p to 835p.

A clutch of miners were also high on the blue-chip climbers board and led by Kazakhmys up 45.5p to 861.5p and BHP Billiton rising 38p to 1025.5p – the first time that the stock has broken through the £10 mark.

The mood was helped by optimism ahead of the banking results season which begins next week with full-year results from Northern Rock on Wednesday.

Northern stood 5.5p higher at 937.5p, while HSBC rose 11p to 954p and Barclays added 3.5p to 605p.

Mobile phone giant Vodafone is due to report customer numbers next week, but continued to suffer from negative sentiment as its shares slipped 2.25p to 121.25p – leaving it at the top of the Footsie fallers board.

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 5p to 258.5p in the FTSE 250 Index.

Other retailers had better luck, with news of a 10.7% sales rise for fashion label Ted Baker sending its shares up 10.5p to 523p.

Meanwhile, the fall for Kesa was matched by IT firm Computacenter after it said talks that could have led to a takeover by its co-founders had come to an end. Shares were 13.75p lower at 241.25p.

The highest Footsie risers today were Kazakhmys up 45.5p to 861.5p, International Power rising 14p to 276p, BHP Billiton up 38p to 1025.5p and Rio Tinto rising 103p to 2890p.

The heaviest fallers were Vodafone off 2.25p to 121.25p, British Airways down 5.25p to 316p, ITV off 1.5p to 108.5p and Sage Group down 3.25p to 246.25p.