FTSE up, despite retail slump

Retail stocks littered the Footsie fallers board today following a fresh forecast of a gloomy Christmas on the UK high street.

Figures from the British Retail Consortium pointed to a poor November, while Woolworths warned that recent sales had been disappointing.

Despite the reaction, the London market held its nerve as the FTSE 100 Index stood 24.4 points stronger at 6074.8 by mid-morning.

The warning that Woolworths needed a major sales improvement in order to hit the lower end of its profit forecasts caused shares in the FTSE 250 Index retailer to dive 10%, or 3.75p, to 33p.

The update unsettled a number of similar retailers, with HMV down 6.5p to 164.5p as investors fretted about increased competition from the internet. WH Smith fell 6p to 378p and Debenhams dipped 3.5p to 181.5p.

Back in the top flight, Next was down 9p to 1775p and Argos-owner Home Retail Group was trading flat at 407p.

Tesco was also under pressure, even though it posted decent sales figures for the past three months. Shares were down 6p to 391.5p, reflecting weak sentiment and worries over inflationary pressures. Morrisons also fell, easing 2p to 259.75p, while Sainsbury slipped 2p to 401.5p.

Elsewhere, HSBC led the fallers, down 15p at 922p, after a cautious trading update included a warning that bad debts in the UK would remain a problem.

The bank said its financial performance for the third quarter of the year improved on the same period 12 months earlier, but it was wary of rising personal bankruptcies and individual voluntary arrangements.

Brewer and pub owner Greene King found itself in positive territory after revealing a 20% jump in profits thanks to new acquisitions in Scotland and the Midlands. The stock was 2p stronger at 1056p.