M&S fails to spark FTSE into life
Marks & Spencer sparkled for a second session today as its shares continued to test the 400p benchmark set last year by former suitor Philip Green.
The stock rose another 2p to 399.25p as figures from rivals – including Mr Green’s Bhs – put yesterday’s trading update from M&S in a positive light.
M&S was one of the few bright spots for the FTSE 100 Index – down 13.4 points to 5367.3 by mid-morning as traders reacted to fears of higher interest rates on both sides of the Atlantic.
The US Federal Reserve indicated inflationary pressures could lead to further rate rises, while Bank of England Governor Mervyn King signalled he was not convinced by the case for lower rates.
The news from the retail sector was largely disappointing, with privately-owned BHS posting a fall in profits and GUS unveiling lower like-for-like sales at its Argos and Homebase operations.
Despite the slowdown, GUS shares picked up 9.5p to 866p as investors focused on comments about market share and the performance of credit checking arm Experian, which has enjoyed strong growth in the United States.
The online gaming sector has taken a beating in recent sessions but PartyGaming recovered 7% or 4.75p to 76.25p on the back of a positive update from smaller rival Sportingbet.
Sportingbet reported strong organic growth since the start of August as its shares lifted 18p to 305p, pulling rival Empire Online and web-based money transfer firm NETeller higher by 9p and 23p to 111p and 748p respectively.
Among other lower-tier stocks, Carphone Warehouse lost hold of the earlier 2% rise achieved after it reported better-than-expected trading in the second quarter. Investors took profits to leave Carphone 3p cheaper at 192p.
But clothing chain Peacock plotted a steady course after announcing an improved sales trend in the second quarter. The group, which is the subject of a management buy-out, rose 2.25p to 319.25p.
