FTSE on the up despite retail losses

Retail stocks were hammered on the London market today after a shock profits warning from Marks & Spencer.

M&S – down more than 18% – painted a grim picture of deteriorating consumer confidence amid a sharp decline in first-quarter sales.

Despite the high street giant’s woes, the wider FTSE 100 Index was 56.9 points higher at 5536.8 by mid-morning, staging a recovery from yesterday’s 2.5% fall as heavyweight drugs and mining stocks gained ground.

But investors’ attentions were firmly focused on retailers as M&S, down 59.5p at 258.75p, led a dire day for the sector after like-for-like sales fell 5.3% in the 13 weeks to June 28.

The firm was closely followed by fashion chain Next, down 64p at 845.5p, or 7%, after a downgrade from Panmure Gordon brokers.

Supermarkets Sainsbury’s and Morrisons lost 14p to 296.25p and 7p to 256p respectively, while B&Q owner Kingfisher shed 2.4p to 104.3p.

Housebuilders were also being punished after Taylor Wimpey warned it had yet to secure capital to shore up its balance sheet in a worsening housing market.

Taylor Wimpey’s shares plunged more than 51%, or 31p to 29p in the FTSE 250 as it reported a dire spring selling season. Barratt Developments was also heavily in the red, down 15.75p to 41p – 27% – while Persimmon slumped 51p to 240.5p.

Back in the top flight drugs giant AstraZeneca was among the leading risers after a legal victory in its fight against generic copies of its top-selling drug, Seroquel.

Shares were up almost 6%, or 121p to 2251p, while rival GlaxoSmithKline gained ground, up 45.5p to 1148.5p.

Heavyweight miners also supported the blue chip index on higher metal prices. Vedanta Resources rose 72p to 2156p and Kazakhmys was 49p better at 1506p.