FTSE gains momentum
Top flight shares picked up the pace in London today after figures showed the housing market was continuing to drift.
After moving modestly above its opening mark in the first hour, the FTSE 100 Index gained momentum to stand 32.2 points ahead at 4856.5 by mid-morning.
Figures from the Halifax showed the average cost of a home increased by 1.1% in December.
However, the mortgage bank said the overall picture remained one of a cooling market, with prices only 0.1% higher in the final quarter of the year. The Halifax stuck to its forecast of a 2% drop in 2005.
Analysts welcomed the data as a further sign that the Bank of England would shy away from hiking interest rates next week.
Despite the gloom surrounding UK retailers, positive figures from their counterparts in the US helped to lift the Dow Jones Industrial Average by 25 points last night.
US retail giant Wal-Mart, which owns Asda, said its sales were up over Christmas and grocery group Costco also said it had a good festive period.
Oil stocks benefited from the rising price of crude, with BP lifting 5p to 514p, Shell up 3.75p at 448.75p and Cairn Energy gaining 23p to 1065p.
In London, overall positive sentiment offset further disappointing news in the retailing sector, with two store groups reporting poor Christmas trading and Sainsbury’s revealing more supply chain problems.
Marks & Spencer regained earlier lost ground, lifting 5.5p to 344.25p despite news that it was slashing annual profit forecasts after cutting prices to clear excess Christmas stock.
JJB Sports climbed 9p to 199p notwithstanding lower profits expectations in the wake of a tough Christmas season.
And struggling supermarket chain Sainsbury’s recovered from an earlier deficit to stand 1.5p ahead at 270p despite saying supply problems had left some of its London stores short of fresh food since the start of the New Year.
