FTSE holds steady

The FTSE 100 Index stuck close to its opening mark today as anxiety over interest rates overshadowed a strong trading update from Sainsbury’s.

The retailer’s 3.7% rise in like-for-like sales over Christmas was met with relief and helped its share price rise nearly 6%, or 23p to 388p. It also led a host of other retailers back into the black during morning trading after they all suffered in the wake of poor sales figures from Marks & Spencer yesterday.

But with investors waiting for the rate decision from the Bank of England, the Footsie was up 7.5 points to 6280.2. It made barely a dent in yesterday’s 84 point fall as confidence on the high street took a hammering.

Sainsbury’s said more than 21.5 million customers shopped at its stores in the week before Christmas, helping drive the third quarter sales hike.

Morrisons was up 6.5p to 313.75p on the back of the update, while B&Q owner Kingfisher put on 5.7p to 121p. Argos firm Home Retail Group added 4.5p to 273p.

M&S shares also started clawing back some of their near-20% fall yesterday, gaining 1% or 5p to 414.25p.

In the second tier, Debenhams was a big riser, gaining 6%, or 3.75p to 67.5p.

Elsewhere, the soaring price of platinum saw Lonmin nudge up 69p to 3449p.

TUI Travel remained high up the FTSE 100 fallers board, down 5.75p to 213p, as investors digested the news that its German parent had sold a 9% stake in the business.

Also among the fallers were oil giants BP and Royal Dutch Shell as the price of a barrel of oil eased to 94 US dollars and BP came under pressure from expectations of lower than forecast fourth quarter profits. BP dipped 8.5p to 602p.

Insulation and roofing materials maker SIG topped the FTSE 250 gainers after announcing a big rise in underlying profits for 2007.