Retail stocks take FTSE into positive territory

Halifax Bank of Scotland stuck close to its opening mark today amid speculation it will announce a £4 billion rights issue this week.

The UK’s biggest mortgage lender was 3.25p lower at 493.75p, although there were gains from other banks after JP Morgan said the worst of the European write-downs might be over.

The wider FTSE 100 Index was 35.2 points higher at 6127.3p by mid-morning, after gains for commodities and retail stocks.

Whitbread’s better-than-expected results gave a lift to consumer-driven sectors after it said it was hopeful of trading through any consumer downturn, lifting shares 4% or 49p to 1239p.

Argos owner Home Retail Group was the leading Footsie riser with a 5% or 12.25p gain to 252.5p ahead of annual figures later this week. Elsewhere in the retail sector Marks & Spencer lifted 10.5p to 371p and fashion chain Next cheered 37p to 1134p.

Miners added support after Credit Suisse raised its target price on Xstrata, lifting the stock 144p to 4149p. Vedanta Resources and Kazakhmys were 81p higher to 2438p and 54p up at 1718p respectively.

And transport companies continued to accelerate after a positive trading update from Stagecoach built on the momentum seen following a progress report from rival Go-Ahead on Friday.

FirstGroup shares were ahead 18p at 51p in the top flight, with Stagecoach 24p stronger at 245.25p in the FTSE 250 Index – a gain of almost 11%.

The leading Footsie faller was pharmaceuticals company Shire, which slipped 31.5p to 908.5p after downgrades from brokers at UBS and Credit Suisse following Friday’s first-quarter results. UBS said sales of its Vyvanse hyperactivity drug were at the bottom end of Shire’s guidance.

An Office of Fair Trading investigation into alleged price-fixing of health, beauty and grocery products also hit the share prices of the UK’s three biggest listed supermarkets.

Sainsbury’s fell 3.75p to 388p, Morrisons slipped 3.25p to 294.75 and Tesco lost 3.75p to 422.75p