FTSE moves up

Losses for consumer-facing firms failed to stop the London market making strong gains today as oil and metal stocks traded higher.

A good start on Wall Street aided the momentum and helped the FTSE 100 Index close 51.4 points higher at 5371.8, clawing back some of yesterday’s 2% slump.

But a raft of high street operators, including the likes of Marks & Spencer and Tesco, were on the back foot as indicators showed trading conditions remained tough.

Sentiment in the retail sector was not helped by the minutes of the Bank of England’s interest rate meeting this month, which showed a quick rate cut was unlikely.

Commodity-focused stocks accounted for the top six blue-chip risers in London, led by Rio Tinto which soared more than 7%, or 345p to 4986p, as metals prices advanced.

It was followed by Eurasian Natural Resources, up 67p to 1027p, and Rio Tinto’s unwanted suitor BHP Billiton, which added 102p to 1622p.

Oil topping US$117 a barrel before easing back slightly also aided energy-related stocks, with Tullow Oil up nearly 7%, or 47.5p to 741.5p, and oil and gas equipment firm Wood Group 8.25p ahead at 414p.

On the flip side British Airways was a notable faller, easing 4.25p to 240.25p. Cruise ship operator Carnival was also down 13p to 1840p.

On the fallers board, BT Group and Barclays dropped 12p to 165.3p and 9.25p to 315p respectively after the stocks began trading without the right to the latest dividend payments.

Analysts at Collins Stewart also voiced fears over BT’s dividend outlook as cashflow comes under pressure from lower margins and higher capital expenditure.

Sainsbury’s was down 12p to 314.75p after industry figures showed a fall in the grocer’s market share from 16.1% to 15.8%. Marks & Spencer fell 3.75p to 252p amid continued concern about the retailer’s own performance, and Tesco joined the slide, falling 7.7p to 370.5p.

Another faller amid the economic worries was marketing services giant WPP, which dropped 5p to 480p.

The biggest faller in the FTSE 250 was Mecom – the media group run by former Mirror boss David Montgomery – as the stock was marked down after disappointing first-half results.

Shares fell nearly 16% or 3.5p to 18.5p and depressed other stocks in the sector, with Trinity Mirror off 5.5p at 95p and Johnston Press 2p lower at 52.5p.

Takeover target Michael Page International went the other way, up 30.75p to 360.75p, or 9% higher, after the recruitment firm’s boss said the business could be sold for 600p or more in an interview with a Swiss newspaper.

The Footsie’s four biggest risers were Rio Tinto up 345p to 4986p, Eurasian Natural Resources up 67p to 1027p, Tullow Oil up 47.5p to 741.5p and BHP Billiton, which ended the day 102p ahead at 1622p.

The four biggest fallers were BT, down 12p to 165.3p, Sainsbury’s down 12p to 314.75p, Cable & Wireless down 5.5p to 169.5p and Barclays, which closed down 9.25p to 315p.