UK retail stocks get boost
News of a pick-up in trading at high street chain Woolworths provided a much-needed boost to a string of top-flight retail stocks today.
Marks & Spencer, Boots and Next all made gains as the sector bucked the downbeat trend elsewhere in the London market.
By mid-morning the FTSE 100 Index stood 32.7 points lower at 5383.7. A quarter-point increase in US interest rates was a factor behind the weakness, while poor-performing mining stocks also weighed on the mood.
One trader said profit-taking had led to a fall in copper prices, which affected a number of miners including BHP Billiton which fell 17p to 844p while Antofagasta lost 30p to 1495p and Xstrata retreated 23p to 1418p.
But in the retail sector, investors were cheered by news from outside the top tier.
Woolies, which said same-store sales fell by 1.7% in the last eight weeks compared with a previous 4.4% decline, was rewarded with a 0.75p gain to 34.5p.
Camera specialist Jessops fared even better, surging 12% or 9p to 86p, as it promised results in line with expectations and reported a recovery from the trading slump it experinced earlier in the calendar year.
The sentiment spread to blue-chip retailers, with M&S adding 4p to 349.25p, Boots up 8p at 623.5p and Next ahead 6p at 1419p.
But back in the lower tiers music management business Sanctuary lost almost 19% of its value, down 1.85p at 8.15p, as it shocked investors by warning it would plunge into the red following a deepening of its trading woes.
Parcels group Business Post also suffered heavy losses, slumping by 26% or 167p to 484p after warning annual profits would be “substantially” lower than last year. It said deteriorating economic conditions had led to a sharp decline in trading at its core business-to-business parcel delivery arm.
