Retail shares dominate FTSE upswing

Shares in Currys owner DSG International jumped 6% today as retail shares peppered the risers board of the FTSE 100 Index.

The gain for DSG – up 7.4p to 128.3p – followed rumours of bid interest for the chain from US retailer Best Buy. Tesco shares also enjoyed a rally amid relief at the contents of the Competition Commission’s long-awaited report into the planning side of the grocery market.

The rest of the stock market was in subdued form as investors awaited tonight’s decision on US interest rates, which is expected to bring another quarter point cut. By mid-morning, the Footsie stood 20.2 points higher at 6679.2, having fallen in the first hour of trading.

Tesco shares rose 2% after analysts suggested the report into the supermarket sector would have minimal impact on the big supermarket chains.

The Competition Commission could force firms to sell land, but the mood from the City was one of relief. That was reflected in Tesco’s share price, which rose 13p to 484.75p.

Elsewhere in the retail sector, Next and Marks & Spencer benefited from broker upgrades, causing shares to lift by 47p to 2174p and 3.5p to 650p respectively.

Oil prices of below 90 US dollars a barrel put pressure on the energy sector with BP down 1.5p at 621p and Royal Dutch Shell off 32p at 2070p. Exploration company BG slipped 9p to 871p.

In the mining sector, Xstrata lost 50p at 3417p and Antofagasta fell 12.5p to 821p.

Taylor Wimpey shares rose 4% as traders responded calmly to a cautious trading update from the housebuilder, preferring instead to focus on the company’s progress with cost savings from their recent merger. The stock was 14p higher at 247.5p, lifting rival Persimmon 42p to 1040p.