FTSE edges towards 5100 barrier
Signs that a cut in the cost of borrowing could be on the cards propelled the FTSE 100 Index to fresh heights today.
Retailers and banking stocks surged on the news that two members of the Bank of England voted for a reduction in interest rates earlier this month.
After breaking through the landmark 5100 barrier earlier on, the Footsie settled at 17.2 points higher at 5099.3, marking another new three-year high.
Dixons was one of the highest climbers, rising 3% or 4.25p to 159.25p as the Bank of England news helped it shake off an initially lacklustre response to its annual results.
The retailer announced a major cost reduction exercise and said underlying profits rose 4% last year.
It was beaten to the top spots by clothing group Next, adding 49p to 1512p and B&Q owner Kingfisher, rising 6.75p to 251.5p. Boots also climbed 15.5p to 613p while Marks & Spencer also put on 2% or 7.25p to 356.75p.
Banking stocks also benefited from the interest rate news as a cut in borrowing would allay fears about levels of consumer bad debts.
The highest Footsie risers today were Next rising 49p to 1512p, Kingfisher adding 6.75p to 251.5p, Dixons up 4.25p to 159.25p and Daily Mail & General Trust rising 18p to 678p.
The heaviest fallers were Severn Trent off 35p to 998p, Capita falling 9.75p to 377.75p, Reckitt Benckiser down 27p to 1644p and Standard Chartered off 16p to 1023p.
