Positive retail picture boosts FTSE

Fashion chain Next topped the list of blue-chip risers after benefiting from a series of broker upgrades today.

Shares in Next kicked on following its trading update yesterday, when the company said profits would be better than expected – despite a disappointing performance on the high street.

With a number of retailers in positive territory, the FTSE 100 Index recovered some of the heavy losses seen earlier in the session to stand 14 points lower at 6273 by mid-morning.

The FTSE 100 Index hit a six-year high at the start of the week, but drifted back to near its 2007 starting point after declines in the past two days.

With oil prices falling 4% yesterday, BP dipped 2p to 560.5p and Royal Dutch Shell eased 23p to 1758p. The latter was impacted by the decision of broker UBS to cut its price target on the stock.

Miners took a battering in the previous session, but the sector held firm today with Antofagasta up 5p to 474p and Xstrata ahead 13p at 2333p.

The wider market struggled for momentum because of the lack of major corporate announcements.

One of the few significant gains came from ICI as investors continued to speculate that the chemicals company will receive a takeover approach. Shares remained at a six-year high after a gain of 10p to 471p.

Next shares were up 3%, or 52p to 1908p, after analysts digested the implications of yesterday’s trading update. Supermarkets also fared well with Tesco 9p higher at 425.75p, Sainsbury’s 3.75p stronger at 273p and Morrisons up 4p at 273.25p.

Meanwhile, fantasy war games retailer Games Workshop saw its shares dive 10% after a profits warning. The Nottingham-based firm said it was confident the business was returning to growth, but admitted it would not meet its annual profits target. Shares fell 39.5p to 367.5p.