FTSE finishes on bright note

The FTSE 100 Index finished a sluggish week on a bright note today after better-than-expected US retail figures eased concerns over the world’s biggest economy.

The London market edged 8.4 points higher to 5625.7 after the data, which showed retail sales rose by 0.3% month-on-month in February despite heavy snow.

The figures confounded fears of a 0.2% decline and gave a minor lift to traders after a largely stagnant week for the blue chip index.

After the boost given by US jobs figures a week earlier, the Footsie has added just 25 points with corporate and economic data thin on the ground, although the leading share index has held firm above the 5600 level and added to the 18-month high set last Friday.

The pound gained ground against the dollar despite the retail figures, trading above 1.52 against the greenback at one point. Sterling was steady at 1.10 against the euro.

Blue-chip banks meanwhile made strong gains today as the sector followed the lead of US counterparts on Thursday night on hopes America will water down its banking crackdown.

Talks broke down yesterday in America over government plans for tighter bank regulation, prompting suggestions they will end up being less onerous.

Part-nationalised Royal Bank of Scotland and Lloyds Banking Group led the sector’s gains, as they were also reported to be among those lined up to handle a bond issue to raise several hundred million euros for one of the world’s largest commodities traders.

RBS rose 2p to 42.6p, while Lloyds was 1.9p dearer at 58.5p. Barclays followed with a gain of 8.1p to 351.85p.

Among other London stocks, British Airways was 2% higher or 5.1p up at 235.6p despite confirmation that cabin crew strikes will take place later this month.

The leading top flight riser was BSkyB, which gained 5% or 28.5p to 598p on vague rumours that Rupert Murdoch could take the satellite broadcaster private.

Retailer Marks & Spencer was also on the up for a second successive session - gaining 4.4p to 358.1p – after John Lewis followed its strong full-year results by posting another healthy weekly sales update.

Outside the top flight, shares in cooker maker Aga Rangemaster dropped 2p to 118p as investors focused on last year’s profit slump despite an encouraging trading outlook.

Nightclub operator Luminar was down for much of the day after it said the cold snap had added to the recent pressure on sales, down 9.9% on a like-for-like basis over its full-year. Shares bounced back later to finish 0.75p ahead at 36.25p.

Waste disposal firm Shanks suffered another day of losses in the FTSE 250, off 4p to 100p after confirmation yesterday that private equity suitor Carlyle Group had ended talks and would not pursue an offer.

The biggest Footsie risers were BSkyB up 28.5p at 598p, RBS ahead 2p at 42.6p, Eurasian Natural Resources up 51p at 1173p and Inmarsat up 30p at 791.5p.

The biggest Footsie fallers were HSBC down 10.6p at 684p, Standard Life off 3.2p at 211.6p, Kingfisher down 2.7p at 221p and SABMiller down 22p at 1874p.