FTSE slips at market close
Retailers made strong advances on the London market today after better than expected sales figures for April.
Fashion chain Next joined supermarkets and DIY firms on the FTSE 100 Index risers board following official retail figures showing that falls in sales volumes during April was not as bad as feared.
But the Footsie struggled for direction despite the retail boost, closing down 16.5 points at 6181.6.
Early gains for commodity shares and some positive corporate news had seen the market get off to a good start, although investor sentiment turned as banks and miners suffered.
A mixed start in Wall Street also added to the lacklustre trading.
The retail sector, however, was enjoying better fortunes than in recent weeks on the Office for National Statistics sales data, led by B&Q owner Kingfisher, ahead 2.4p at 137.3p.
Next followed with a gain of 19p to 1222p, while Tesco and Sainsbury also saw shares lift more than 1%, up 6.5p at 422p and 4.75p at 344.75 respectively.
Record oil prices above 135 US dollars a barrel had been good for oil giants, but as oil prices later slipped back, BP and Royal Dutch Shell gave back gains. BP closed down 3.25p at 646.5p while shell ended the day down 43p at 2169p.
Travel firms and airlines also saw a reversal of fortunes. British Airways had seen shares fall below £2 for the first time, but saw shares soar 5% late in the session after the British Air Line Pilots’ Association said it had withdrawn its court action against BA, averting a potentially costly pilot strike. Shares ended the day up 9.5p at 212.25p.
Miners bounced back from falls earlier this week after Alliance Bernstein lifted price targets on a trio of players.
BHP Billiton – among those marked up – gained 44p to 2110p and 87p to 6728p. But the sector was also represented on the fallers board with Vedanta Resources off 64p to 2648p after a Goldman Sachs downgrade.
Telecoms company Cable & Wireless made progress after annual results came in ahead of expectations, as it signalled it may be ready to consider a possible demerger.
Cable shares reacted with a gain of nearly 3% or 4.1p to 156.6p, while fellow telecoms firm Vodafone improved 4.9p to 163.5p after news out of Italy that meant its tariffs here will end up being reduced by less than previously expected.
Dairy Milk maker Cadbury was also one of the leading risers, up 16.5p to 698p after speculation of a possible takeover rippled through the market. Traders talked of a possible deal with US giant Hershey or Kraft.
But falls for bank stocks came after downbeat comments from broker Keefe Bruyette & Woods. Barclays was the leading victim, down 6p at 392p.
The London Stock Exchange was the biggest faller, off nearly 5% or 50p to 1038p despite results in line with expectation and an “encouraging” start to the new year as some analysts fretted over increasing competition.
The biggest Footsie risers were British Airways up 9.5p at 212.25p, Vodafone ahead 4.9p at 163.5p, Scottish & Southern up 42p at 1469p and Cable & Wireless up 4.1p at 156.6p.
The biggest Footsie fallers were LSE down 50p at 1038p, Imperial Tobacco down 92p at 2095p, Cairn Energy off 143p at 3538p and BG Group down 47p at 1347p.
