FTSE reclaims some ground

The London market broke a three-day losing streak today after property and retail stocks enjoyed a return to investor favour.

Hammerson and department store chain Debenhams were among the top performers as the FTSE 100 Index finished in positive territory after a hat-trick of losing sessions.

The benchmark index closed 13.7 points ahead at 6215.7, as US markets opened strongly after Friday’s sell-off.

The Dow Jones Industrial Average lost nearly 250 points in the previous session but Wall Street made firm strides after reports of more foreign financial support for US banks and positive results from computer and software giant IBM.

Among the biggest retail gainers was Debenhams – a FTSE 250 Index stock – after investors digested reports suggesting positive like-for-like sales tomorrow after a last-minute trading rally.

Shares in Debenhams, which have been rocked by a series of profit warnings, recovered some recent losses to lift almost 13%, or 8.75p to 76.5p.

There was more cheer from the second tier when catalogue firm N Brown posted a 14% increase in like-for-like sales for the 20 weeks to January 12, sending shares 16% or 33.5p up to 241.75p.

In the Footsie, this cheered Argos and Homebase owner Home Retail Group with shares rising 8p to 281p on hopes for a decent trading update later this week.

Small-cap stock Ted Baker added to the positive mood after it said sales rose 12.5% on a year earlier during the two months to December 24. Shares gained 6%, or 28p to 507p.

The news from the retail sector was not all positive after furniture chain ScS axed its dividend this year because of a sharp fall in like-for-like sales. ScS tumbled more than 8%, or 4p to 43.5p.

Back in the top flight, supermarket giant Tesco endured a more difficult session with a fall of more than 1% after analysts at Morgan Stanley said investors should not bank on the company outperforming the FTSE 100 Index this year. Shares in the firm were at record highs two months ago but eased 6p to 420p.

Property firms moved in the opposite direction as investors eyed value following a wretched run for the sector. Hammerson’s announcement that it had secured Marks & Spencer as anchor tenant for a development in Leeds fuelled the gains as its shares rose 9% or 86.5p to 1020p. Land Securities lifted 54p to 1516p, Liberty International soared 60p to 990p and British Land cheered 45.5p to 944.5p.

Among the leading fallers, pharmaceutical firm Shire was on the back foot after a broker downgrade from Merrill Lynch. Shares were down 38p to 1142p.

Elsewhere, Forth Ports benefited from takeover speculation after it emerged funds controlled by Australian firm Babcock & Brown had built a 20% stake in the ports operator. Shares were 8%, or 152p, higher at 2090p.

The four biggest Footsie risers were Hammerson up 86.5p to 1020p, Persimmon up 47.5p to 739p, Liberty International adding 60p to 990p and British Land up 45.5p to 944.5p.

The four biggest Footsie fallers were Imperial Tobacco down 106p to 2600p, London Stock Exchange off 62p to 1756p, Shire down 38p to 1142p, and Wolseley off 17.5p to 681.5p.