Morrisons leads rise in FTSE

Shares in resurgent supermarket chain Morrisons surged 7% to their highest level in more than two years today.

Results from the Bradford-based group showed it turned first-half pre-tax losses of £82.1m (€122.28m) into profits of £134.2m (€200m) this year, as it overcame problems associated with the takeover of larger rival Safeway in 2004.

Morrisons shares were up 17p to 250.5p, while the rest of the market also rose with the FTSE 100 Index up 17.3 points to 5883.5 at mid-morning.

Lower energy stocks acted as a drag on the market early on, but traders returned to the market as previous uncertainty over interest rates eased.

Heavyweight risers included Vodafone, which rose 1.5p to 116p, and Prudential after a gain of 8.5p to 623p. Sainsbury’s joined the Morrisons improvement after TNS till-roll figures showed progress in its battle to overhaul the sector’s second-placed operator Asda. Sainsbury’s was up 7.5p at 385.25p.

With oil prices at $61 a barrel, BP fell 3.5p to 576p and BG Group dipped 7p to 638.5p.

Power providers were also impacted by a cooling in wholesale prices, with International Power down 6p at 308.5p and North Yorkshire-based Drax off 13p at 822p.

Engine giant Rolls-Royce was another faller, down 1.75p to 454p, after the owner of Airbus announced further delivery delays on the A380 superjumbo.

Former top flight company Cable & Wireless was among the risers in the FTSE 250 Index. Shares in the telecoms company were up 1.75p to 131.5p, as it gave a presentation to investors offering hopes of better-than-expected margins growth at its international operation.

Nightclub operator Luminar also rose 2p to 575p, reflecting a return to positive sales growth at its dancing division. The company did not provide an update on the sale of its Chicago Rock Cafe division.