Media and water companies help FTSE maintain gains

Positive broker comment lifted media and water companies today as the FTSE 100 Index clung on to recent gains.

ITV’s shares were up 11% amid hopes of a recovery for the media sector next year from Goldman Sachs, while Credit Suisse upped its ratings on a host of utilities.

The wider FTSE was 11.9 points higher at 4423.6 by mid-morning – helped by better than expected US consumer confidence figures – although mortgage figures showing lending at an eight-year low offered a note of caution.

Beleaguered ITV has been hit badly by the downturn but Goldman’s more positive view of the outlook helped shares 2.75p up to 30.75p in the FTSE 250. Johnston Press, another stock favoured by Goldman, added 1p to 25p.

In the top flight, Severn Trent surged up the leaders’ board, gaining 51p to 1190p following the Credit Suisse note. Northumbrian Water added 9p to 255.5p.

Severn was only bettered among Footsie stocks by Homebase owner Home Retail Group, up 11p to 237.5p as investors took their cue from improved current trading at Topps Tiles. Topps soared 15% or 9.75p to 74.25p in the second tier after its well-received update.

But the performance of the retail sector overall was mixed, with Next down 52p at 1445p and Marks & Spencer 2p lower at 285.75p, a fall of 1%. DSG International was 1.75p higher at 25p in the FTSE 250.

Among the banks, Lloyds Banking Group was a top-flight faller, off 0.5p at 66.3p after Nationwide warned of tough conditions ahead and the squeeze on profits from lower savings margins and increased bad debts.

In other corporate news, Jessops shares tumbled 67% after the company said any debt restructuring of its business would leave shareholders with nothing. It also reported losses of £6.3 million for the six months to March 31, as the beleaguered stock slipped 4.45p to 2.2p.