FTSE edges ahead

Fashion house Burberry was the top faller in the FTSE 100 Index today as its stellar annual results were overshadowed by a bout of profit-taking.

The chain reported a 39% increase in underlying pre-tax profits to £298m (€345m), in line with City expectations, but shares dropped 60p to 1260p after some investors cashed-in on its recent hot run of form.

Despite the performance of Burberry shares, the FTSE 100 Index edged ahead, up 10.9 points to 5881 after being boosted by a strong performance from mining and energy stocks.

London’s blue chip index was also not derailed by a 0.3% fall in the Dow Jones Industrial Average after the world’s biggest economy received disappointing news about unemployment and the pace of its recovery.

The pound was up at 1.63 against the dollar, which came under pressure following disappointing economic figures. Sterling was also up against the euro, at 1.16, after the single currency lost value as a result of on-going eurozone debt fears.

Mining and energy companies defied a slight dip in some commodity prices to post gains. Copper giant Antofagasta was among the top risers, up 42p to 1258p, after a 29% rise in first quarter revenues, while platinum producer Lonmin cheered 38p to 1534p.

Pumps and valves firm Weir was the top riser after it lifted 5% or 100p to 1984p following a positive broker note.

Man Group, the world’s largest listed hedge fund by market value, was another leading riser after annual pre-tax profits of $599m (€423m) came in higher than forecasts of $560m made by the company in March. Shares were up more than 2% or 5.9p at 245p.

Meanwhile, Lloyds Banking Group shares received a boost after a report said Virgin Money was planning to put in a bid for its 600 available branches.

Lloyds was up 0.6p at 51.3p, while elsewhere in the sector Barclays was down 0.5p at 271.3p and Royal Bank of Scotland dropped 0.4p to 40.9p.

In other corporate results, United Utilities rose 5p to 622p after it defied the winter weather to meet its leakage target for the last financial year. Operating profits from its water arm were down 17% however, caused by lower prices imposed by regulator Ofwat.

Outside the top flight, defence products firm Qinetiq was down 2.4p to 115.4p after it returned to profit at a statutory level and said a strong performance in its products division offset tough trading in UK and US services.

And Daily Mail & General Trust slid 2% – down 10.5p to 490.5p – after it reported a slide in advertising revenues amid “volatile and uncertain” conditions for the newspaper sector.

The biggest Footsie risers were Weir Group up 100p at 1984p, Antofagasta ahead 42p at 1258p, Lonmin up 38p at 1534p, and Man Group ahead 5.9p at 245p.

The biggest Footsie fallers were Burberry down 60p at 1260p, Carnival off 61p at 2395p, Whitbread down 29p at 1620p, and Shire off 25p at 1850p.