FTSE stable despite concerns about US economy

Fashion retailer Next today built on its strong gain seen this week as talk of a possible bid for the high street stalwart continued to surround the stock.

The group led the blue chip risers with a gain of nearly 7%, or 158p to 2460p.

The FTSE 100 Index held steady, with a gain of 0.8 points to 6293.4, as it shrugged off a negative start to the session after downbeat US consumer confidence figures yesterday compounded concerns about America’s economy.

Strong UK gross domestic product figures also helped buoy the market, despite a slight fall from initial forecasts during the three months to the end of 2006.

Rising oil prices saw energy stocks higher with BG Group up 10.5p to 734p and BP rising 10p to 553.5p. Royal Dutch Shell gained 25p to 1705p, after it also revealed that its chief executive Jeroen van der Veer would stay on until June 2009.

United Utilities rose 9.5p to 756.5p after a positive update showed trading was in line with expectations.

Banking giant Barclays saw its shares rebound from losses in the previous session with a rise of 8.5p to 735p, after it yesterday informed investors that it was confident with the progress on its ABN Amro bid.

Investors were unimpressed with the latest round of corporate results and trading updates as Alliance Boots slipped 1.5p to 1019.5p even as it advised that it was set to meet annual profits forecasts.

Supermarket Sainsbury’s lifted 2p to 552.5p as its fourth quarter results topped hopes with a 5.9% rise in like-for-like sales.

The Footsie was held back as a number of stocks lost ground after they declared themselves ex-dividend, meaning buyers are not entitled to the latest payouts. Building and plumbing group Wolseley led the pack with a loss of 42p to 1175p, while brewing group Scottish & Newcastle fell 18.5p to 528p. Broadcaster BSkyB was also off 7.5p to 562.5p and Standard Life dipped 3.5p to 307.25p.