FTSE up despite retail fears

A profits warning from Currys and PC World parent Dixons Retail triggered declines for retailers today, but the news failed to drag the wider market down.

The FTSE 250 firm saw shares plunge 18% as it revealed sales declines in the UK and Ireland worsened to 11% since Christmas and said it was considering pulling out of Spain.

The warning hit firms across the retail sector, although gains among miners helped the wider market lift 31.2 points to 5963.4.

Domino's Pizza was suffering after it revealed growth in same-store sales in the UK over the 13 weeks to March 27 were offset by deteriorating sales in Ireland.

The company said like-for-like sales in its 48 stores in the Republic reduced by 10.5% in the 13 weeks to March 27, while its stores in the UK saw sales increase by 5.5%. The fast food delivery firm saw shares slump 6% or 26p to 419.9p.

Dixons shone the spotlight on the troubled high street sector after its profit alert shocked the market, coming just two months after it last lowered expectations.

Its shares fell 3p to 13.1p, while rival and Comet parent Kesa Electricals dropped 3.1p to 127.9p.

Fellow FTSE 250 stock Home Retail Group, which owns Argos and Homebase, followed it with a 5.4p drop to 196p.

In the top tier, Marks & Spencer was the biggest faller with a 9p drop to 342.3p, while Next was not far behind as it dropped 34p to 2031p.

There was little cheer offered by results of a survey from the CBI revealing that high street trading grew in March compared with a year ago and at a faster rate than last month, with the group warning sales growth still remained subdued.

However, luxury group Burberry bucked the trend as it continued to benefit from a broker note citing it as a takeover target earlier in the week. Shares were ahead 28p at 1190p.

The heavily weighted mining sector was up after Anglo-Australian Rio Tinto increased its stake in bid target Riversdale to 41%.

Rio Tinto, which is seeking to get enough shareholder support for its $3.9bn (€2.76bn) bid for the Mozambique-focused steel-making coal miner, saw shares rise 83p to 4449p, while Vedanta Resources was ahead 122p at 2360p and BHP Billiton advanced 72p to 2486.5p.

British gas parent Centrica saw shares lift 9.4p to 332p after it signed a €3.3m (€2.34) contract with Aberdeen's Plexus Holding for the supply equipment needed for five exploration wells in the Norwegian north sea.