Footsie back in the black

A rally by retailers and mobile phone giant Vodafone sent the FTSE 100 Index back above the 6100 barrier today after losses in the previous session.

Vodafone led the way as investors welcomed reports that Verizon Communicationshad offered 38 billion US dollars for its stake in Verizo Wireless.

Brighter retail stocks such as Dixons and Currys owner DSG International added to the buoyant mood as the FTSE 100 Index moved 38.5 points higher to 6105.6.

Vodafone topped the risers board with gains of 3% or 4p to 130p amid hopes that it would sell its 45% share in US-based Verizon Wireless.

It was followed into positive territory by a number of retailers after the British Retail Consortium (BRC) said that high street sales rose 6.8% on a like-for-like basis last month.

Among them was DSG International, 5.75p higher at 194.25p, while B&Q owner Kingfisher lifted 2.5p to 238.5p after broker UBS decided that its shares were now a buy and the BRC reported increased demand for items such as power tools, garden equipment and lawnmowers in April.

Clothing retailers were also higher after warmer weather drove sales in April. Next was the cheerleader in the sector rising 20p to 1726p, while Marks & Spencer was ahead by 7p to 627p and Argos owner GUS rose 15p to 1054p.

The gains in the retail sector included the supermarket giants, even though the Office of Fair Trading confirmed plans to refer the sector to the Competition Commission for an investigation into allegations of anti-competitive practices.

Tesco, which is likely to be most affected by the distraction of a lengthy inquiry, saw its shares rise 1% or 2.5p to 318.75p, with Sainsbury’s ahead 1.75p at 346.75p and Morrisons 1.5p stronger at 191p.

But accountancy software supplier Sage Group was 5% lower, down 12.75p to 252.5p, as investors were disappointed by organic revenue growth despite a 19% hike in first half profits to £113.7 million.

In the second tier, home shopping retailer N Brown rose 4p to 231.5p after posting pre-tax profits of £51.8 million and maintaining strong sales growth into the current financial year.

And music and books retailer HMV was up 2p at 174.75p, even though it revealed that trading since Christmas had remained poor.

But it was a bad day for lottery firm Chariot after new game “monday – the Charities Lottery” made its first draw.

A rush of punters wanting to play delayed last night’s draw but despite an “outstanding level of interest” in the game – which is seen as a rival to the National Lottery – Chariot shares fell 18% today or 24p to 111p to below its listing price of 115p.

Today’s biggest blue chip risers were Vodafone up 4p to 130p, DSG 5.75p ahead at 194.25p, British Energy Group up 20p to 681p and PartyGaming which ticked 4p higher to 18p.

The heaviest fallers were Sage down 12.75p to 252.5p, Man Group off 73p to 2652p, Schroders NV down 29p to 1064p and Schroder which was 30p lower at 1115p.