Footsie downbeat in early trading

Strong gains for Dixons owner DSG International and merger partners Boots and Alliance UniChem excited traders in an otherwise downbeat session today.

The impact of a number of stocks going ex-dividend – meaning investors are no longer entitled to the latest payment – caused the FTSE 100 Index to fall 3.9 points to 6101.7 by mid-morning.

But the disappointment failed to deflect from an excellent performance by some of the best known names in the retail sector.

Shares in DSG led the way with a gain of almost 8% – up 14.5p to 208.75p - after it raised profits guidance in the wake of a 9% jump in like-for-like sales at Currys and an 8% rise for Dixons.

The retail sector was also buoyed by strong first quarter profits figures from Celesio, the Germany-based drugs wholesaler and owner of the Lloyds chemist chain in the UK.

With Boots and Alliance UniChem also gaining clearance for their merger last night, shares in the pair rose 34p to 738p and 49p to 930.5p respectively.

The upbeat mood in the retail sector, following positive British Retail Consortium figures yesterday, caused Next to lift 38p to 1764p and Argos owner GUS to cheer 18p to 1072p. Kingfisher, which owns B&Q, rose 5.5p to 244p.

On the downside, a clutch of stocks were lower as investors lost the right to the latest dividend payment. They included Prudential, which was off 9p at 643p, while Centrica dipped 2.5p to 297.5p.

The news was not all bright from the retail sector as French Connection reported further trading woes with its third profits warning in 18 months.

Shares were 9p lower at 211p after it said trading over Easter had been difficult with like-for-like sales at its stores in the UK and Europe down 2% since the end of January.