Profits warning fail to dampen FTSE

The London market was kept afloat by mining giants today after the owner of Currys and PC World issued a profits warning triggering declines among retailers.

FTSE 250 firm Dixons Retail 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 the FTSE 100 Index closed 16 points higher at 5948.3.

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%. Shares in the fast food delivery firm fell 4% or 18.8p to 427.2p.

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 13.7p, while rival and Comet parent Kesa Electricals dropped 7p to 124p.

Fellow FTSE 250 stock Home Retail Group, which owns Argos and Homebase, followed it with a 8.5p drop to 192.9p.

In the top tier, Marks & Spencer was the biggest faller with a 10.6p drop to 340.7p, while Next was not far behind as it dropped 54p to 2011p.

There was little cheer offered by the results of a survey from the CBI which revealed 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.

But the slight improvement boosted the pound, which was up against the US dollar at 1.60 and the euro at 1.13.

However, luxury group Burberry bucked the trend as it continued to benefit from a broker note citing it as a takeover target. Shares were ahead 23p at 1185p.

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 44p to 4410p, while Vedanta Resources was ahead 76p at 2314p and BHP Billiton advanced 34.5p to 2449p.

British gas parent Centrica saw shares lift 8.1p to 330.7p after it signed a €3.3m (€2.34m) contract with Aberdeen's Plexus Holding for the supply equipment needed for five exploration wells in the Norwegian north sea.

The biggest Footsie risers were Vedanta Resources up 76p at 2314p, Centrica ahead 8.1p at 330.7p, British American Tobacco up 59p at 2521p and Petrofac ahead 30p at 1459p.

The biggest Footsie fallers were Marks & Spencer down 10.6p at 340.7p, Lloyds Banking Group off 1.7p at 58.6p, Next down 54p at 2011p and Invensys off 8.1p at 346.8p.