Positive retail results steer FTSE upwards
Better-than-feared trading updates from retailers Next and Debenhams helped steer the FTSE 100 Index towards a sixth straight session of gains today.
Investors breathed a sigh of relief at trading updates from the sector heavyweights for the all-important festive period.
Firmer metal prices also gave a boost to miners, which contributed to resilient trading on the London market, with the Footsie up 35.9 points to 4615.5 by mid-morning.
And futures for the Dow Jones Industrial Average pointed to a firmer start on Wall Street after yesterday’s losses.
In London, Next shares jumped 9% or 100p to 1191p after it held profits forecasts in line with previous guidance and reported a good start to New Year sales.
Argos owner Home Retail Group added 13.25p to 226.75p, while Marks & Spencer was 6.5p higher at 236.5p ahead of its own trading update tomorrow.
But with a 26% rise, FTSE 250 stock Debenhams was the sector’s star performer after the department store chain limited its like-for-like sales decline to 3.5% and said profits rose in the 18 weeks to January 3. Shares have been battered by trading and debt concerns, but responded to today’s update with a gain of 7.5p to 36p.
Homewares firm Dunelm joined the retail rally as it reported a 5.6% fall in like-for-like sales but said it had held its margins by avoiding unplanned promotions. Shares were 4% or 5p higher at 135p.
Back in the top flight, miners added to the blue chip advances, with Xstrata the biggest gainer in the sector, ahead 61.5p at 854.5p.
But banks were suffering in the wake of yesterday’s downbeat outlook from Deutsche Bank and the Financial Services Authority’s decision not to extend the ban on short-selling when it expires next Friday.
Lloyds TSB was the biggest loser, down 4%, or 27p to 609p, followed by Royal Bank of Scotland, off 0.9p at 51.6p.
