Retailers and banks push up FTSE
Retailers and banks provided the driving force for the London market today as the FTSE 100 Index put back all of the losses seen yesterday.
Marks & Spencer led the high street rally after investors reacted to signs that chief executive Stuart Rose was managing to protect profitability, in spite of continued falls in like-for-like sales growth.
The shot-in-the arm for the retail sector added to a recovery by oil stocks and higher banking shares as the Footsie reached mid-morning 33.1 points higher at 5250.3 – in sight of closing at another three-year high.
M&S shares gained almost 3% or 9.75p to 367.75p, even though the company said like-for-like sales dropped by 5.4% during the 14 weeks to July 9.
Instead the market latched on to comments that M&S was on track to hit its targets for cost savings and margins this year.
The rest of the retail sector was in positive mood, with Argos owner GUS benefiting from a strong performance by Burberry, which it majority owns.
GUS lifted 19.5p to 866p while FTSE 250 Index company Burberry improved 31p to 443p – a gain of 7% – after announcing a 10% rise in first quarter sales.
Among other high street firms, Dixons improved 1.75p to 158p and Next lifted 18p to 1533p.
Halfords was a riser in the second tier after announcing a strong start to its new financial year, following a 2.7% increase in first quarter like-for-like sales. Shares were up by more than 2%, or 7.5p to 303p.
Back in the top flight, oil stocks recovered some of their poise after a difficult session yesterday. BP put worries about damage to its Thunder Horse platform in the Gulf of Mexico behind it, adding 6.5p to 626p while Shell improved 1.25p to stand at 543.25p.
The positive mood stretched to the banking sector where a positive note on the UK market from Goldman Sachs lifted Halifax Bank of Scotland almost 2% higher - up 16p at 890.5p – and pushed Royal Bank of Scotland ahead by 25p at 1742p.
