Retailers suffer falls on FTSE

Shares in Carpetright and Comet owner Kesa Electricals slumped today after the pair highlighted the pressure facing retailers in the current climate.

The pair fell 16% and 9% respectively, while in the FTSE 100 Index miners put the London market under further pressure, although the top flight pulled itself out of negative territory to stand 8.6 points higher at 4286.2 by mid-morning.

The main interest was in the second tier after more news from struggling retailers. Carpets and floor coverings firm Carpetright was the leading FTSE 250 faller, sliding 63p to 331p after warning of profits “significantly below” hopes this year.

It was followed by Comet owner Kesa Electricals, which reported an £8.1m (€9.04m) loss and double-digit sales falls at the UK electricals chain, sending shares 9.25p lower to 92.75p.

Elsewhere in the FTSE 250, music retailer HMV was 8.75p lighter at 100.25p but Kesa’s rival and Currys owner DSG International recovered from a weak start to stand quarter of a penny higher at 15p. In the top-flight B&Q owner Kingfisher lost 9.25p to 92.75p, or 9%.

The wider FTSE saw miners ease on reports that struggling steelmakers were set to demand lower iron ore prices. Rio Tinto was the leading casualty in the sector, down 100p to 1441p or 7%.

Many oil stocks eased as crude prices steadied at around $44 (€49) a barrel. Prospector Tullow Oil was the exception – shooting 48.5p to 620p and the top of the FTSE risers board after a fresh find in Uganda.

Dairy Milk firm Cadbury was on the fallers board despite telling investors that it continued to perform in line with expectations, including in its UK division. The City was more concerned about a softening American market, causing shares to fall 15.5p to 541.5p.