FTSE in negative territory

Currys owner DSG International became the biggest casualty of the Christmas season as it warned today that profit margins had taken a hit.

The stock dived 10% as sentiment towards the retailer also took a blow from a challenging period for Currys and difficult trading on the continent.

DSG was 20.5 points lower at 173.75p, although the market overall was in solid form after seeing a fall in unemployment figures. The FTSE 100 Index reached mid-morning 4.3 points lower at 6210.5.

While DSG came under pressure, Argos owner Home Retail Group gained 1% as it said stronger margins had offset weaker sales.

HRG was up 3.75p to 412p after it promised that profits for both the Argos and Homebase chains were likely to be at the top end of expectations.

Woolworths also protected margins during the festive season, meaning shares in the FTSE 250 Index stock edged ahead half a penny to 34p. The improvement came despite a 4.6% fall in like-for-like sales.

Elsewhere in the top flight, brewer SABMiller jumped 3%, or 38p to 1209p, after benefiting from a positive trading update.

And British Gas owner Centrica was ahead by 2% after Merrill Lynch upgraded the stock and said the fall in wholesale prices should feed through to significantly improved margins.

The rest of the sector fared less well as fading bid talk relating to Scottish & Southern Energy caused its shares to give back gains yesterday. The stock was down 29p at 1531p.

And in the second-tier, military research body Qinetiq gained 1% after it was reported to have won the bulk of a multi-billion pound defence training contract. Shares were up 1.75p to 209.25p.

Doorstep lender Provident Financial was up 14.5p to 764.5p, as it said it was in talks to sell its insurance arm.